Alberta reaches settlement with two coal companies in billion-dollar lawsuits

National Observer

a day ago

Two coal companies suing Alberta's government over its mining policy flip-flop say they've reached a settlement agreement with the province.
Notices published online by Evolve Power and Atrum Coal dated last month say details are confidential, and no dollar figures are disclosed.
Atrum, in its notice, said its agreement is definitive, though Evolve's notice says the terms of its own settlement are being finalized.
"The content of those negotiations remain confidential and subject to settlement privilege as a matter of Canadian law, so further details cannot be shared at this time," the Evolve notice said.
"We look forward to updating shareholders once a definitive agreement is concluded, which is expected in September."
Evolve's 2021 statement of claim sought just over $1.75 billion in damages, while Atrum sought more than $3.5 billion.
The office of Alberta Energy Minister Brian Jean did not immediately respond to a request for comment Thursday. A year-end report published last week says the ministry spent $356 million more than expected last fiscal year, "primarily related to settlement of litigation claims and cost of selling oil."
Evolve and Atrum are among five coal companies suing Alberta for a collective $16 billion in sunk costs and lost revenue.
Four companies, including Evolve and Atrum, argue that Alberta effectively expropriated their land when it suddenly reinstated its long-standing coal policy in 2022, putting new coal exploration and development projects on ice across much of the province.
The policy was lifted less than two years before, and companies had been encouraged at that time to buy land and leases for coal mining projects.
Alberta lifted the coal policy again earlier this year in favour of a new rule system, and Premier Danielle Smith said at the time that protecting taxpayers from a massive payout was something her government had in mind by lifting the policy.
In January, Evolve's chief executive, Peter Doyle, said Alberta lifting its policy again would have no effect on its lawsuit.
'If the government really cares about protecting taxpayers and generating investment in a steelmaking coal industry in Alberta, they should come to the table to settle the lawsuits and pay fair compensation for the property they've expropriated,' Doyle said at the time.
The other two companies involved in the suit, Valory Resources and Cabin Ridge, did not immediately respond to questions about whether they also reached settlements.
A fifth company suing Alberta over its coal policy, Northback Holdings, said Thursday that since its own lawsuit is separate it couldn't comment on the settlements.
Northback's Grassy Mountain open-pit coal mine project was allowed to proceed despite Alberta's coal policy being reinstated in 2022, but last year it launched a lawsuit arguing the regulatory process was flawed.
In May, Alberta's energy regulator granted Northback exploratory permits for its Grassy Mountain project.