Alberta reaches settlement with 2 coal companies over policy change

Two coal companies that sued Alberta over its decision to change the rules around coal mining have reached a settlement with the provincial government.

In a notice published online, Evolve Power Ltd. said it had reached an agreement-in-principle with the government to resolve its claim over the Chinook Project. Two days earlier, Atrum Coal Ltd. said it had signed a definitive agreement to settle its lawsuit concerning the Elan Coal Project.

Both companies alleged the government's decision to open up mountains to more mining in 2020 but later reversing course on those plans amounted to a constructive taking, or "de facto expropriation," of their coal assets. The news of the settlements was first reported by The Globe and Mail. 

The dollar figures of the agreements were not disclosed, with both companies saying terms were confidential and subject to settlement privilege. Both said they would seek to update shareholders later this year.

Including Evolve and Atrum, five companies sought more than $15 billion in damages in a joint case tied to the policy change.

The other companies were Cabin Ridge Holdings Ltd. and Cabin Ridge Project Ltd.; along with its subsidiary, Elan Coal Ltd. and Black Eagle Mining Corp., all of which did not immediately respond to requests for comment from CBC News.

A spokesperson with Alberta's Ministry of Treasury Board and Finance declined to comment, citing the matter being before the courts. Peter Doyle, CEO of Evolve, also declined to comment.

Northback Holdings also launched a damages claim in June 2024 to be heard separately. A representative with Northback didn't immediately respond to an inquiry from CBC News.

Still much to be determined

Nigel Bankes, an emeritus professor of law at the University of Calgary who specializes in natural resources and energy law, said there are still many details that the public does not know about these cases.

"We don't know the terms in dollar terms, but we also don't know what the companies are giving up," he said.

"Are they returning to the Crown all of their coal rights as part of the deal? 

Bankes said he wasn't surprised that the settlement agreements are confidential. 

"They will always have in them, though, clauses that allow companies to make proper reporting to securities regulators," he said.

"I think what is disappointing is that we, the citizens and taxpayers of Alberta, learn about these settlements not by way of announcements from the government of Alberta, but as they leak out on the websites of foreign coal mining companies."

The Alberta government recently lifted a ban on coal development in the Eastern Slopes. Asked in January about how the court cases factored into the decision, Alberta Premier Danielle Smith said the province was considering taxpayers when it took action.

In January, Doyle told The Canadian Press that 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.