The BIGGEST Coal Threat to Date

Your letter will be sent to your representative Member of the Legislative Assembly, as well as the Minister of Energy and MInerals, and the Premier of Alberta.

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New Coal Development is a Bad Deal for Albertans

I am writing to express my concern about the serious financial and environmental risks associated with renewed coal development in Alberta, particularly in light of recent legal settlements and ongoing development by foreign coal companies.

In light of these concerns, I urge you to:

1. Reinstate the moratorium on new coal exploration and development in Alberta’s Eastern Slopes until a new coal policy is developed, based on full-cost economics and public and Indigenous consultation, to avoid further liabilities.

2. Advocate for full transparency in all settlements with coal companies.

3. Ensure the new Coal Industry Modernization Initiative or any other new coal policy or legislation aligns with the Coal Policy Committee reports and public consultation results to restrict all new coal development across Alberta’s Eastern Slopes in perpetuity, to create regulatory and financial certainty.

4. To ensure a level playing field, any new policy needs to apply equally to all projects, and no individual project or company, including Northback’s Grassy Mountain and Valory’s Blackstone projects, should be exempt from industry-wide restrictions.

Costly Settlements Without Policy Clarity

The Alberta government has paid out nearly $240 million in settlements to coal companies such as Evolve Power and Atrum Coal, following the threat of lawsuits related to policy changes made in line with government consultation that called for a halt to new coal exploration and development in the Alberta’s Rocky Mountains.

The financial details of two additional lawsuits by Cabin Ridge and Black Eagle Ltd., a company owned by Valory Resources, have not yet been released, we still do not know the full extent of these payouts. These lawsuits came in response to the province’s decision to reinstate the 1976 Coal Policy after initially lifting it in 2020, and based on the calls of Albertans, to enact a moratorium in 2022. It is unclear how these settlements were determined. In fact, according to our own provincial legislation, specifically the Mines and Minerals Act and the Mineral Rights Compensation Regulation, the total amount due to ALL four companies, based on incurred costs, is approximately $138 million!

Albertans deserve to know why taxpayers paid 4.5 times more than these foreign companies are legally owed! Companies like Northback and Valory continue to advance and promote new exploration and development, despite the lack of clarity on the future of Alberta’s promised Coal Industry Modernization Initiative which has yet to be released. We have already paid four companies more than they are legally entitled, why should more foreign coal development be permitted to proceed at a cost to Albertans?

Moreover, the lack of transparency around settlement terms undermines public trust and accountability. It is an undemocratic and unjustifiable process for these companies to be advancing projects in the absence of a new, strong policy to protect Alberta’s Rocky Mountains from coal. By lifting the moratorium, it has created more legal liability. A moratorium on new coal development should be reinstated until there is a new coal policy and no company should be exempt from legislation or policy.

Additionally, the tumultuous and inconsistent track record of the regulatory process consumes public and industry resources, and like in the case of Summit Coal's Mine 14, can be overridden by a single person. Without a coal policy that protects the eastern slopes, communities, and other industry investors are left only with uncertainty.

Long-term Reclamation and Pollution Liabilities

Beyond litigation, coal development carries long-term reclamation and pollution liabilities. Coal mining produces wastewater which contains harmful substances such as selenium, and heavy metals. These pose serious risks to fish and other aquatic life. Selenium, in particular, is highly problematic. Coal mines in Alberta regularly exceed the selenium thresholds identified to protect aquatic life.  There is no regulation in place that sets or enforces selenium limits and, while advancements have been made, there is still no available technology that can adequately protect aquatic life from being harmed by selenium release.

Studies show that even decades after closure, reclaimed coal mines continue to leach contaminants like selenium and heavy metals into Alberta’s waterways, threatening aquatic species and our water, and exacerbating current and future financial liabilities.

The Minister of Energy and the Premier have both promised zero selenium release from new mines. A new coal policy must reflect this promised limit. Water pollution is not the only concern, water withdrawals from Alberta’s rivers are already unsustainable, and yet new coal mines will require enormous amounts freshwater in their water intensive processes.

Coal development can also destroy habitat for other at-risk species, like rare alpine plants, and mammals that do not tolerate such major disturbances such as grizzly bears, bighorn sheep, and mountain goats. These environmental costs are not adequately addressed by current reclamation standards.

Threats to Rural Livelihoods

In addition to the direct financial and environmental risks, new coal mines pose a serious threat to existing industries that are vital to Alberta’s rural economy, such as ranching, outfitting, and tourism. Coal development in the Eastern Slopes displaces grazing lands, fragments wildlife habitat, and restricts access to trails and scenic areas that support outfitting and recreational businesses. Studies have shown that the economic benefits of coal mining are minimal, while the costs to other industries—including lost income from ranching and reduced tourism potential—are substantial and long-lasting. These industries rely on healthy landscapes and clean water, both of which are jeopardized by mining and associated infrastructure. The cumulative impact undermines Alberta’s reputation as a destination for wilderness experiences and sustainable agriculture

Finally, Alberta’s coal resource revenues remain low. According to the province’s royalty data, coal royalties contribute only a small fraction of total resource revenues, especially when compared to other industries.

The economic return does not justify the financial, environmental, and reputational risks associated with expanding coal development.

Thank you for your attention to this important issue. I would welcome the opportunity to discuss this further and hope you will stand with Albertans in protecting our land, water, community health, and provincial economy.

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