Alberta government lifts ban on coal exploration in Eastern Slopes

The Alberta government has lifted a ban on coal exploration in the eastern slopes of the Rocky Mountains, a move that the regulator says will allow suspended projects to resume.

The provincial government said Monday night the direction from the minister amounted to "housekeeping" following moves it already announced in December to modernize its coal policy. 

But a natural resources and energy law expert says it will once again open up large tracts of land to coal exploration and potentially undermine ongoing legal cases coal companies launched against the province for billions in damages following a series of policy changes.

"It means that projects that had already got exploration permits, those permits are effectively now reinstated, and exploration can start again on those properties," said Nigel Bankes, an emeritus professor of law at the University of Calgary.

"The eastern slopes is open again for coal activities."

Four separate statements of claim are scheduled to be heard at the same time this April, alleging Alberta's decision to change coal mining rules cost them financially and resulted in a "de facto expropriation" of their coal assets.

"Instead of waiting for the spring session [of the legislature], they have made this decision now. And I think the reason is to take the wind out of the sails of those compensation claims," Bankes said.

Cancels three ministerial orders

In a letter sent to the Alberta Energy Regulator (AER) on Jan. 15, Alberta Energy and Minerals Minister Brian Jean wrote that he had decided to cancel three previous ministerial orders from 2021 and 2022 to reduce regulatory confusion.

The letter went on to say that the AER must lift the suspension on all coal project approvals that were put on hold under the rescinded orders. Expiry dates for the approvals would also be extended to account for the time they were suspended, the letter states.

In an email to CBC News, a spokesperson with the AER wrote that companies with approvals that were paused by earlier orders can move forward again, and new applications for coal projects can now be submitted.

"Until Alberta's modernized coal policy is ready, coal exploration and development applications will be subject to the land categories outlined in the 1976 coal policy for Alberta when evaluating coal applications," Renato Gandia wrote in an email.

In December, Jean said the province was developing rules that would shape the future of coal mining in the province. The province has said those eventual new rules would not permit mountaintop removal mining, which it noted has never occurred in Alberta. There would also be no new open-pit coal mines approved for the eastern slopes region.

The 1976 coal policy was previously scrapped by the Alberta government in 2021, but was later reinstated temporarily following a period of public pushback. 

One of the biggest consequences of the revocation of the policy from 1976 was that the department of energy started to issue hundreds, if not thousands, of coal leases immediately, Bankes said.

These leases were based on old applications that had been on hold for decades but were kept on file, he said. 

Jean's latest directive removes the ministerial orders that acted as a moratorium on those old applications, allowing suspended leases and new applications to move forward under the revised guidelines.

"The implication of that was, as I say, hundreds if not thousands of new leases issued, which were then put on hold as a result of the moratorium, but now are available for possible exploration activities," Bankes said.

"These are big tracts of land in the Bighorn area, west of Red Deer. So it's not just southern Alberta. And there are big tracts of land on the west side of Highway 22, the Cowboy Trail."

The Canadian Parks and Wilderness Society released a statement on Monday, writing that it believed the move served to illustrate that the government's coal modernization plans "will serve to cater to the coal industry."

"This is a profoundly short-sighted and irresponsible decision by the Minister of Energy and Minerals that puts the health, future and prosperity of Alberta, and our communities, at grave risk," wrote Katie Morrison, executive director at CPAWS Southern Alberta, in a statement. "We will be fiercely opposing this new direction — and we know we won't be alone. Albertans have fought this fight before and won."

In a statement, a spokesperson in Jean's office wrote that the move was "essentially a housekeeping change to implement the changes [announced] in December."

"Rescinding the old orders and giving a new one will bring clarity to the regulatory process for Albertans and potential investors while the Alberta Coal Industry Modernization Initiative (CIMI) is created and implemented," the statement reads.

"This does not open the door for coal development projects hoping to get approval before the new rules come into force. The Alberta Energy Regulator will be expected to keep the environmental protection and land-use goals of the CIMI, announced on Dec. 20, 2024, in mind when evaluating any coal exploration applications submitted from this point on."

Bankes didn't agree with the characterization of the move as "housekeeping," writing in an email that he thought the province's statement was "dishonest."

"It is not housekeeping. It actually changes the rules and it changes the rules now," he said.

The AER said it was in the process of sending letters of reconsideration to impacted companies. It added, upon their confirmation of receipt, those letters would be posted online.