The Yukon government has reached a settlement agreement with Corix Water Systems regarding the Dawson City wastewater treatment facility.

The government filed the $39.5-million lawsuit in 2017 – alleging that Corix’s plant didn’t work.

Two years later, a joint statement released Friday afternoon stated the two parties have agreed not to pursue any further legal action.

A non-disclosure agreement bars either party from revealing how much money has changed hands in the settlement.

The release states that the “contractual relationship between Corix Water Systems and the Government of Yukon is now over.

“Neither the Government of Yukon nor Corix will pay the other any amount of money in addition to what has been paid to date.”

It adds that both parties are “satisfied” with the settlement.

John Streicker, the minister of Community Services, told the Star early this afternoon that non-disclosure agreements are “typical” of commercial settlements.

Streicker said his government is working with Dawson City to replace the wastewater facility with a better solution. In January, Dawson City’s council voted unanimously to go forward on a sewage lagoon.

Streicker said his government has known from the start that the wastewater facility would need replacement.

“We know that the plant was expensive to build, we know that it is taking nearly a million dollars a year to operate,” Streicker said.

“We know all of that makes it not a long-term solution at all.”

Streicker said he has been working with Dawson City for more than a year to solve the problem.

Sewage lagoons are used across communities in the Yukon, Streicker noted. The annual cost of operations ranges according to the lagoon’s location, but is usually less than $100,000.

Streicker wasn’t able to estimate the building cost of the lagoon in Dawson, but guessed it will be “a lot less than the $30 million” spent on building the wastewater facility.

Dawson currently contributes $210,000 to the operations of the wastewater facility, which will continue operating for several years, until the lagoon replaces it.

“If we get to a sewage lagoon, it’s going to be less expensive for them too,” Streicker said.

Streicker said the government typically seeks federal funding on such infrastructure projects, and his department will work with the City of Dawson to get the project done.

Mayor Wayne Potoroka could not be reached for comment.

The opposition parties have expressed the desire for more transparency on the issue, particularly regarding the end result of the two-year legal dispute with Corix.

Kate White, the leader of the NDP, said today Yukoners have a right to know the outcome of the settlement.

“I think hiding behind a non-disclosure agreement is the easy answer right now,” White told the Star.

White added that Yukoners have a right to know how much money the government has sunk into the failed facility, and the potential cost of reversing the mistake.

She noted that the current ruling government inherited the treatment facility from the previous Yukon Party government, which “doubled down” on the facility working during its reign.

“One could say the chapter has been closed on something that never worked and has never been proven to work,” White said.

She suggested the decision to move forward on a solution outside the wastewater facility could have come sooner in the three-plus years the Liberal government has been in power.

“It should have come much quicker; it’s essentially a money pit,” she said.

Madison Pearson, a Yukon Party spokesperson, said today it’s hoping for more information about the Corix settlement.

“We would like to hear more concrete details from the minister on this secretive agreement,” Pearson wrote in an emailed statement.

“Yukoners should be informed about the amount the Liberal government received as part of the secret settlement.

“Further, we look forward to hearing the government’s explanation on their rationale behind the settlement.”

The $34.3-million wastewater facility has been an ongoing issue since it became operational in 2012, consistently failing to meet the terms of its water licence.

The facility saw a number of cost escalations that year, leading to the City of Dawson’s refusing to accept ownership of the facility after its trial run period.

The government took over operations of the plant from Corix in 2015, making a “last-ditch effort” to make the plant compliant two years ago.

Last year, the Star reported that the cost of maintaining the plant had ballooned to $950,000 annually.

Streicker described the costs as “significantly higher than in any other Yukon community” at the time.

Streicker said these costs were expected to rise as the plant aged and additional maintenance was required.

The operating failures of the plant from the get-go spurred the government to file the lawsuit against Corix.

The government was seeking $27 million to cover construction costs, and $12.5 million for a bond Corix filed with its insurer.

A request for comment from Corix Water Systems was not returned.