The recent $142.8 million settlement paid to Atrum Coal represents just the beginning of what could become a multi-billion dollar burden for Alberta taxpayers, exposing a troubling pattern of policy reversals that continues to threaten public funds.
The Quiet Policy Reversal
Just before the May long weekend in 2020, during the height of the COVID-19 pandemic, the Alberta government silently rescinded the 1976 Coal Development Policy without any public consultation. This decades-old policy had protected approximately 1.5 million hectares of sensitive lands within Alberta's critical watersheds for more than forty years.
The timing of this announcement, as Albertans prepared for a holiday weekend, would establish a concerning pattern of releasing significant coal policy decisions during periods when public attention was likely to be diverted.
Rush for Resources and Public Backlash
Following the policy change, coal companies moved quickly to secure access to previously protected areas. Between July and September 2020, the government approved applications and granted leases for 240,000 hectares of what had been protected Category 2 lands along the Eastern Slopes of the Rocky Mountains.
This rapid development triggered substantial public opposition, legal challenges from multiple First Nations communities, and official resolutions from dozens of Alberta municipalities. In response to this widespread concern, the government reinstated the 1976 Coal Policy in February 2021. However, the reversal came with a significant caveat: all leases issued since June 2020 would remain valid.
Taxpayer Consequences Mount
After the coal policy committee delivered its recommendations and public pressure continued to build, the Energy Minister implemented a moratorium in March 2022 that halted all new coal exploration and development. The government exempted four "advanced projects" from this moratorium.
This series of policy changes created the conditions for legal action, as coal companies that had been invited to invest under the 2020 policy found themselves blocked by subsequent reversals. Five companies have now filed lawsuits seeking a combined $15 billion in damages from the provincial government.
To date, Albertans have paid nearly $240 million in settlements, including the $143 million to Atrum Coal and an additional $95 million to Evolve Power. The government has not provided transparency regarding how these settlement figures were calculated, leaving taxpayers in the dark about the justification for these substantial payments.
Of particular concern is the Atrum Coal settlement structure, where only $6 million (representing just 4.2 percent of the total payout) is being withheld until the company completes legally mandated reclamation work. This arrangement significantly weakens the requirement for companies to address environmental impacts of their activities.
Pattern Repeats with New Initiative
The concerning pattern of timing and policy changes continues. On December 20, 2024, right before the Christmas holiday, the government announced the Coal Industry Modernization Initiative (CIMI). Then, on January 16, 2025, during Alberta Energy Regulator hearings concerning the Grassy Mountain project, Energy Minister Brian Jean quietly lifted the 2022 moratorium, once again opening the door to further coal development.
Legal experts note that under Alberta's Mines and Minerals Act, compensation should theoretically be limited to actual costs incurred by companies, not speculative future profits. If taxpayer-funded settlements have exceeded these legal requirements, Albertans deserve a full explanation from their government.
With approximately $10 billion in outstanding claims still pending, the financial consequences of these policy reversals could escalate dramatically, creating a substantial long-term burden for Alberta taxpayers who are already facing numerous economic challenges.
