The Alberta government has agreed to pay $95 million to an Australian coal company as part of a legal resolution regarding modifications to the province’s coal policy. This settlement, disclosed in a recent communication to the company’s shareholders by Evolve Power, marks the conclusion of an agreement that was initially accepted by the province earlier in the year.
Additionally, the government settled for $143 million with another company, Atrum Coal, earlier in the year. Both Evolve and Atrum were part of a group of coal companies that filed lawsuits against the province in 2023 due to alterations in Alberta’s coal policies.
The policy changes began in 2020 when the UCP government revoked the longstanding coal policy established in 1976 by former premier Peter Lougheed, which had enforced broad environmental protections in the Rocky Mountains. Subsequently, in 2021, amidst opposition from various groups including ranchers, environmentalists, First Nations, and musicians like Corb Lund, the government temporarily reinstated the old policy pending public consultations.
After conducting consultations in 2022, the government decided to maintain the 1976 coal policy while allowing four “advanced projects” to proceed through the regulatory process. Subsequently, in 2023, Evolve and Atrum, alongside other coal companies, sued the government for $15 billion in damages, claiming that the policy changes in 2020 had led them to invest in coal mining projects that were later impacted by subsequent rule changes.
In June 2024, Northback Holdings, the company behind the proposed Grassy Mountain coal project, initiated a separate claim for damages related to regulatory processes. Towards the end of 2024, the provincial government unveiled plans to revise the coal policy once again, lifting the ban on coal exploration in the Eastern Slopes of the Rocky Mountains in early 2025.
Premier Danielle Smith highlighted that these changes aimed to shield taxpayers from significant legal costs related to the lawsuits. As part of the settlement, Evolve Power agreed to relinquish coal leases obtained for two projects, Chinook and Greenfield, while retaining the Tent Mountain Project.
The Alberta NDP’s environment critic, Sarah Elmeligi, criticized the UCP government for the costly consequences of their policy shifts, estimating a financial impact of over $200 million on Albertans. She emphasized that these funds could have been allocated to environmental conservation, education, healthcare, or family support instead.
Kennedy Halvorson from the Alberta Wilderness Association expressed disappointment over public funds being directed towards coal company payouts and called for greater transparency regarding the coal lawsuits. The association emphasized the need for clarity to prevent citizens from being uninformed.
Regarding the settlements, the spokesperson for Energy Minister Brian Jean’s office mentioned that the terms remain privileged, limiting the government’s ability to provide details beyond what the companies disclose. They assured that the settlements would align with the best interests of Albertans. The spokesperson also noted that the coal companies’ lawsuits referenced correspondence from 2016 between the previous NDP government and the Alberta Energy Regulator, discussing exceptions to the 1976 coal policy for surface-mine applications in certain areas.
