The Alberta government is set to pay $95 million to an Australian coal company as part of a legal resolution revolving around alterations to the province’s coal policy. This settlement was disclosed in a recent communication to the company’s shareholders by Evolve Power, expressing satisfaction in revealing the financial terms of the settlement, which the province had tentatively agreed to earlier in the year. Additionally, the province had also reached a $143 million settlement with another company, Atrum Coal, earlier in the same year.
Evolve and Atrum were part of a group of coal companies that took legal action against the province in 2023 over the changes in Alberta’s coal policies. The government had rescinded the long-standing coal policy established in 1976 in 2020, which had initially been put in place under then-Premier Peter Lougheed, enacting comprehensive environmental safeguards across extensive areas of the Rocky Mountains.
Subsequently, amidst widespread public backlash in 2021 from various factions including ranchers, environmentalists, First Nations, and musicians like Corb Lund, the government temporarily reinstated the old policy pending further consultations. After conducting these consultations in 2022, the government decided to maintain the 1976 coal policy but permitted four “advanced projects” to progress through the regulatory process.
In 2023, a coalition of coal companies, including Evolve and Atrum, filed a lawsuit against the government seeking $15 billion in damages, contending that the policy changes in 2020 had encouraged their investments in land and leases for coal mining ventures, only to have the regulations altered subsequently, stalling some of these projects.
In June 2024, Northback Holdings, the entity behind the proposed Grassy Mountain coal project, initiated a separate claim for damages associated with regulatory processes, scheduled for a separate hearing. Towards the end of 2024, the provincial government announced intentions to modify the coal policy once more, and in early 2025, it lifted the ban on coal exploration in the Eastern Slopes of the Rocky Mountains.
Premier Danielle Smith highlighted that these changes aimed to safeguard taxpayers from substantial legal liabilities connected to the lawsuits. Despite this, Alberta NDP environment critic Sarah Elmeligi criticized the UCP government for causing confusion with their decisions on coal exploration and permitting, resulting in significant costs to Albertans exceeding $200 million. She expressed concerns over the diverted funds that could have been utilized for public welfare instead.
Evolve Power, as part of the settlement, agreed to relinquish the coal leases acquired for its Chinook and Greenfield projects to the government, excluding the Tent Mountain Project. The company had initially planned to mine coal at Tent Mountain but later shifted focus to developing a pumped-hydro energy storage facility on the site. Evolve Power CEO Peter Doyle refrained from further comments on the settlement beyond what was disclosed to investors.
A spokesperson for Energy Minister Brian Jean’s office stated that the government does not intend to reissue the surrendered rights, aligning with their commitment to safeguard the foothills and Rocky Mountains. The spokesperson emphasized the government’s legal limitations in discussing the settlement terms, reiterating that the outcomes will align with the best interests of Albertans. Additionally, the spokesperson noted that the coal companies’ lawsuits referenced correspondence from 2016 between the previous NDP government and the Alberta Energy Regulator regarding potential exceptions to the 1976 coal policy.
