July 30, 2025
Treaty 7 | Mohkínstsis | Wîchîspa | Guts’ists’i

Alberta citizens are now on the hook for a $142.8 million payout to Atrum Coal Limited, the first major settlement in a wave of lawsuits tied to the province’s back-and-forth decisions on coal policy over the past five years.

It all began in 2020, when the Alberta government quietly rescinded the 1976 coal policy without public consultation. This decision opened up 1.5 million hectares of ecologically sensitive lands within Alberta’s major watersheds for potential coal exploration. Coal companies like Atrum were quick to move in to begin exploration activities.

Then, following massive public opposition, the government reversed course in 2021, reinstating the coal policy and, by 2022, putting a temporary moratorium on all coal exploration or development until a new coal policy could be developed. In response, Atrum sued the province, claiming financial damages from the pause on coal. While the province hasn’t released any details about the settlement, Atrum recently confirmed that the final figure it will be receiving from Alberta is nearly $143 million. Unfortunately, this is likely only the beginning. Four other coal companies have launched similar legal actions, with combined claims totalling about $15 billion.

Time to Clean Up

Adding to the pressure on Albertans is the fact that only $6 million (just 4.2% of the payout) is being withheld until Atrum fulfills its reclamation obligations. This money is presumably intended to ensure the company follows through on the legally required cleanup of its exploration activities. However, since a pause on new coal activity was in place from 2022 to early 2025, many companies are already behind on their reclamation requirements. The government has not disclosed the extent of environmental damage that has been done so far, or what further costs taxpayers might incur if companies fail to meet their legal obligations. CPAWS Southern Alberta does not believe that any payouts should be given until companies have completed all reclamation work and legal obligations.

Albertans Deserve Answers

At the same time, no explanation has been provided for how the $142.8 million figure was reached. Under Alberta’s Mines and Minerals Act, when the Minister cancels a coal lease, compensation is limited to costs that have been paid to date on exploration or development activities. This can include rent, application fees, exploration and development costs, anticipated reclamation, and interest —but NOT speculative future profits. If Alberta paid more than what’s legally required, they deserve answers.

Albertans Need a Clear and Permanent Ban on New Coal

Meanwhile, the province is developing the new Coal Industry Modernization Initiative, which the Minister has said will be developed with industry. This past January, the government also lifted the moratorium on coal in yet another move against the will of Albertans. After such a costly settlement for Albertans, and with more payouts likely still to come, CPAWS Southern Alberta is calling for the new coal policy to clearly and permanently ban any new coal exploration and development across the Eastern Slopes, including on lands with freehold coal rights, to protect Albertans from this costly situation repeating itself.

For years, Albertans have been saying NO to coal, yet they’re now left footing the bill for government decisions made without consultation, transparency, or regard for public will. This nearly $143 million payout to Atrum may be just the start of a much bigger financial burden.

Watch the CTV News story here.

For further information please contact: 

Katie Morrison | Executive Director, CPAWS Southern Alberta 
kmorrison@cpaws.org