Top Alberta Court allows appeal of coal miner's exploration applications

Alberta's top court has allowed a southwestern ranching community to appeal the provincial energy regulator's decision to accept applications to explore for coal in the Rocky Mountains.

In a ruling released Thursday, the Alberta Court of Appeal said it will hear arguments from the Municipal District of Ranchland that the Alberta Energy Regulator shouldn't have accepted three applications from Northback Holdings for work at the Grassy Mountain site in southwestern Alberta.

"I find that a serious, arguable issue is established," wrote Justice Kevin Feth.

The Australian-owned company is trying to develop a coal mine at the site in the Crowsnest Pass area despite the fact the same project, under a different company name, has previously failed to pass an environmental review. As well, the Alberta government has issued an order blocking coal development in the Rockies.

But the government order contains an exemption for projects considered to be "advanced."

In November 2023, Energy Minister Brian Jean wrote the Alberta Energy Regulator suggesting Northback's applications be accepted. He said because the project had previously come before regulators, it should be considered advanced and exempt from the order.

The regulator then accepted Northback's three applications.

Feth said the court needs to weigh Ranchland's argument that a project, once rejected by a regulatory body, no longer exists and can't be considered advanced.

"The municipal district contends that once an application for exploration or development is rejected, as it was here, the 'project' ceases to exist," he wrote. "A new application involving the same lands is not the same project.

"The (regulator's) decision did not address this alternative interpretation."

Feth also said the regulator may have placed too much weight on Jean's letter.

"The (regulator's) decision appears to offer no independent analysis of whether Grassy Mountain met this definition (of an advanced project) in arriving at its decision to accept Northback's applications."

Feth wrote that the issue of what defines an "advanced project" has implications for three other projects that Jean referred to in his letter.

"The (regulator's) interpretation invites the possibility of a sequence of applications involving each of the four identified projects or lands over many years, which could repeatedly affect multiple parties and stakeholders."

The regulator has said it would hold public hearings on Northback's applications, although it hasn't set a date.