A court ruling Tuesday ordering the province to properly consult with Northwestern B.C. First Nations is being viewed as a major victory by the bands, who say it opens the door to their demand for a share of stumpage revenues on Crown timber.

The B.C. Supreme Court ordered Forests Minister Mike de Jong to consult and accommodate First Nations affected by the transfer of Skeena Cellulose's timber tenures or risk having the transfer quashed.

The transfer of the forest licenses was essential to the April 30 sale of the insolvent forest company to NWBC Timber & Pulp for $6 million.

Skeena once employed 6,000 workers and through its forest tenures, has access to 2.1 million cubic metres of Crown timber a year, about three per cent of the total provincial harvest.

The ruling is the latest in a string of rulings that have advanced native Indian claims. By declaring the government has a duty to accommodate as well as consult, the court has opened the door to economic participation by them -- including a share of provincial stumpage revenues -- they said Tuesday.

"This is another call for the province to take native rights seriously," said Greg McDade, legal counsel for the Lax Kw'alaams band, one of four North Coast tribes who filed to have the licence transfer overturned.

It also sends a strong message to other forest companies that First Nations must be included in any decision to transfer tenures. One other licence transfer, four million cubic metres in tenures held by Doman Industries to Brascan Financial, is now before the minister. The Skeena decision has relevance to the Doman case, Doman's lawyer said earlier.

Besides ordering the government to consult, Justice David Tysoe said the First Nations have established a prima facia case for aboriginal title and rights which were infringed on when the minister transferred Skeena's licences without adequately consulting them.

The ministry is reviewing the ruling and had little comment on it Tuesday. Ministry representative Rena Kendall-Craydon said the government would rather consult than litigate but said: "We are still trying to figure out what this decision means."

The ruling provides the government a "last chance" to include First Nations in economic decisions affecting them, said Glen Williams, a hereditary chief of the Gitanyow, one of four tribal groups who challenged the forests minister's decision to transfer Skeena's timber tenures.

In his ruling, Tysoe explores the complex issues of aboriginal rights and provincial duties. While he clearly finds the government's efforts lacking, he is concerned that if he quashes the licence transfer now, the impact on Skeena could be too drastic.

He states there was no meaningful consultation by the Crown with First Nations "and there was no attempt whatsoever to accommodate their concerns."

However, he dismisses an application by the Gitanyow to have that included in his order.

"It is preferable to first make a declaration with respect to the duty of consultation on an interim basis and then allow the parties to undertake a proper process of consultation and negotiation," he says.

Tysoe's declaration states:

- The forests minister has a legal duty to consult and accommodate First Nations.
- The minister is required to provide them with information.
- Both parties can seek further clarification relating to the duty to consult and accommodate.
- An application by the First Nations to quash the licence transfer is adjourned, but not dismissed, giving the First Nations the liberty to re-apply in the event they are not satisfied with the government's efforts to accommodate them.

Four groups -- The Gitanyow, Gitxsan, Lax Kw'alaams and Metlakatla -- applied to the courts to quash the transfer.

"This is their last chance to do it properly according to the law," Williams said in an interview from Smithers, where Tysoe delivered his ruling. "If they don't behave properly, we can go back to the court and inform the court the government is not complying, therefore we are seeking to quash the transfer.

"If that's what is needed to get the government to abide by what the high court is saying today, we would go back."

Williams said the Gitanyow are seeking in part a share of resource revenues collected by the government and employment opportunities.

"One of the biggest interests our chiefs have is sharing a wealth of the land, in particularly, sharing the stumpage," Williams said.

Garry Reece, chief councillor of the Lax Kw'alaams band, said the ruling provides the 2,700 members of his band and all First Nations the right to participate in the provincial economy.

"Over the years, our community hasn't been getting anything out of the resources. We have been making deals with forest companies for revenue sharing and that is what we are looking for [from the Crown.]"

"This is a huge ruling."

Daniel Veniez, president of NWBC Timber & Pulp said the company intends to continue on its path to re-open the Prince Rupert pulp mill and associated sawmills despite the ruling.

"Ministerial consent was not quashed. The change in control remains in place," Veniez said. "It's pretty clear though that Justice Tysoe feels consultation was not adequate and how the government deals with that is an issue to consider. We will be at any consultation we are invited to attend."