Smith says taxpayers must be protected from lawsuits as Alberta lifts coal moratorium

Alberta Premier Danielle Smith says the province had taxpayers in mind when it decided to lift a ban on new coal exploration and development on the eastern slopes of the Rocky Mountains last week.

Speaking to reporters Tuesday, Smith cited pending lawsuits against the province filed by five coal companies arguing they are owed more than $15 billion combined in lost revenues and sunk costs.

“We have to take that seriously, and we have to make sure that the taxpayers are protected,” Smith said.

Alberta repealed its decades-old coal policy and issued new leases in 2020, only to put nearly all new projects on ice less than two years later after a storm of public pushback.

The sudden freeze on coal exploration and development meant companies that took heed of the government’s policy direction and purchased new leases for potential mining found themselves stuck with land they couldn’t use.

Last week, Energy Minister Brian Jean sent a letter to the Alberta Energy Regulator directing the moratorium on new coal development be lifted, allowing previously frozen projects to proceed through the regulatory process.

Jean’s office said Monday in a statement that lifting the moratorium doesn’t mean the government has declared open season for coal mining, as critics and conservationists suggest.

His office said the energy regulator will need to keep in mind the goals of the government’s new coal policy, which Jean announced in December, as it reviews new projects.

The policy direction includes a ban on certain types of coal mining techniques, such as open-pit mining, as well as a requirement that companies show how they can prevent toxic selenium from leaching into watersheds.

“We’re bringing through a better, more robust policy, and so that’s part of the reason why we put that forward,” said Smith, adding the policy addresses concerns Albertans shared after the previous policy was rescinded.

Glenn Vassallo, the head of corporate and project finance for Valory Resources — one of the five companies suing the province — said in an email Monday that the government’s removal of the moratorium “must be applauded.”

“These decisions by the Alberta government provide an incredible opportunity for Alberta to build a world-class underground steel making coal industry, using modern technology which is safe, efficient and environmentally friendly,” Vassallo said.

Vassallo said he couldn’t comment on what the government’s decision means for the outstanding lawsuit.

Alberta country singer Corb Lund, an outspoken critic of coal mining in the eastern slopes, said there will still be a price to pay even if the government’s decision staves off damages sought by the coal companies. 

“So in exchange for keeping their eggs off their face, they’re sacrificing our eastern slopes and our water,” Lund said in an interview Tuesday.

“Whatever it costs in court is a tiny, tiny fraction of what it’s going to cost the taxpayers years from now to clean this mess up.”

Lund also said he had no confidence the government’s policy would accomplish what Jean and Smith say it will.

“All they care about is protecting their own butts and pleasing the coal companies,” Lund said.

“People in southern Alberta need take a really hard look at this if they want to keep their water clean.”