Municipal district scraps Grassy Mountain appeal after provincial coal rule changes
Joel Dryden | CBC News | Posted: February 5, 2025 10:45 PM | Last Updated: February 5
Alberta government lifted ban on coal exploration in Eastern Slopes in late January
The reeve of a southwestern ranching community says the municipal district has cancelled its appeal of exploration applications tied to the Grassy Mountain site in southwestern Alberta.
Ron Davis, reeve of the M.D. of Ranchland, said recent rule changes from the provincial government have upended the district's arguments tied to its Alberta Court of Appeal case.
"Given that the government has changed the rules, our case didn't seem like it had as much impact as we would like," Davis said.
In August 2024, Alberta's top court allowed Ranchland's appeal, with Justice Kevin Feth writing he found that "a serious, arguable issue [was] established" after the provincial energy regulator accepted applications from Northback Holdings, the company behind the Grassy Mountain mine project.
But in January, the Alberta government lifted a ban on coal exploration in the Eastern Slopes of the Rocky Mountains, a move the Alberta Energy Regulator (AER) said would allow suspended projects to resume.
Ranchland's case had been based on the idea that new exploration applications from Northback should have been subject to a moratorium issued in 2022, said Nigel Bankes, an emeritus professor of law at the University of Calgary.
"This [move is] not surprising," Bankes wrote in an email. "Since Minister [Brian] Jean's ministerial order lifted the moratorium, there was really no longer any basis on which the M.D. could argue the AER should not be considering the applications."
A spokesperson in Jean's office declined to comment, citing the matter being before the AER or the court.
Ball now in AER's court
Last month, the AER wrapped up a second round of public hearings in Calgary tied to exploration permits submitted by Northback Holdings. The first round of hearings was held in Pincher Creek, Alta., in December.
A decision from the AER is expected 90 days from the close of the hearing. Exploration cannot proceed unless and until Northback receives a positive decision from the AER, Bankes noted.
Grassy Mountain was previously rejected in 2021 by the federal government, which cited adverse effects "on surface water quality, including from selenium effluent discharge."
With its new plans, Northback has promised a more modern operation, including "minimizing environmental impacts and disruptions."
The long-controversial proposed coking coal mine has seen support in recent months from residents of Crowsnest Pass, who voted decisively in a non-binding vote in favour of the project.
Many in that community have expressed hopes that the mine moving ahead would lift the local economy.
The site is not actually located in Crowsnest Pass, but in nearby Ranchland, which has long stood in opposition of the coal project. That difference in opinion led to Crowsnest Pass council floating the idea late last year of annexing Ranchland.
Ranchland has a small population of just over 100 residents. Davis, the reeve of the M.D., said the district is "very disappointed" with how the rule changes have played out.
"We are very concerned, given that there would be the potential for more mines within our boundaries. And that is a large concern," Davis said.
Legal experts have also said the province's recent rule changes could undermine ongoing legal cases that coal companies launched against the province for billions in damages. Alberta Premier Danielle Smith has said the province was considering taxpayers when it took action.
"If you look at the lawsuits that have been filed, it's $16 billion with the potential liability," Smith said in January. "We have to take that seriously, and we have to make sure that the taxpayers are protected. At the same time, metallurgical coal is incredibly valuable."