The Alberta Power Regulator authorised on Thursday a controversial coal exploration challenge on the japanese slopes of the Rocky Mountains.
Northback Holdings Corp.’s challenge at Grassy Mountain was rejected in 2021, when a panel dominated probably environmental results on fish and water high quality outweighed potential financial advantages.
The challenge, situated on an inactive legacy coal mine web site within the Municipal District of Ranchland, was revived two years later.
Final 12 months, it was exempted from the Alberta authorities’s determination to ban open-pit coal mines, as a result of Northback’s software was thought-about an “superior” proposal.
A written determination from the regulator says it decided approving the challenge is within the public curiosity and the challenge received’t have destructive results on water high quality or wildlife, which many at public hearings argued will occur.
The choice grants Northback permits to drill and to divert water to the positioning, which was additionally a priority raised by farmers in drought-ridden components of southern Alberta.
The authorised deep drilling allow will enable Northback to drill greater than 150 metres underground on each private and non-private land in its seek for coal deposits.
The corporate will solely be capable of draw water from a close-by finish pit lake that it owns and that’s indirectly linked to different water our bodies or rivers, the choice says.
The choice notes that it’s doable there shall be some runoff from the lake, nevertheless it had been decided the challenge received’t have any impact on water high quality or amount downstream.
It additionally says the potential for the challenge to generate poisonous selenium is unlikely, “as a result of there shall be no excavation, no coal-mining operations and no new waste rock piles created.”
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“If the prevailing waste rock piles usually are not elevating downstream selenium ranges, it’s affordable to conclude that these exploration actions are unlikely to raise selenium ranges,” the choice says.
The regulator additionally decided that potential hurt to wildlife is unlikely, as no new roads are to be constructed as a part of the challenge.
The regulator was glad general with the challenge’s public curiosity, saying as it might present employment alternatives to close by residents, together with First Nations communities, whereas permitting the corporate to proceed investing within the space.
“We assessed the social and financial results of the exploration program and located it to be constructive,” the choice says, including that Northback plans to spend a minimum of $2.5 million domestically as a part of the exploration.
“Whereas the magnitude of the financial impacts could seem modest, they’re proportional to this system scale and length.”
The choice says the corporate has spent over $1 billion since 2015 attempting to advance the challenge however that it wasn’t a consideration for the regulator.
The challenge will even give Albertans extra info on the size of the coal deposit at Grassy Mountain, says the choice.
“The exploration program will contribute to the continued analysis of this coal useful resource and, based mostly on our evaluation, will achieve this in an orderly, environment friendly and environmentally accountable method,” it says.
Rita Blacklaws, a spokesperson for Northback, mentioned in an e mail the corporate thanked the regulator for the choice.
“With this consequence, Northback continues our dedication to carry advantages to Albertans whereas adhering to the very best environmental requirements,” Blacklaws mentioned.
Opposition NDP atmosphere critic Sarah Elmeligi mentioned the choice is flawed.
“Albertans have been clear they are not looking for coal mining on the japanese slopes,” she mentioned.
“What a horrible day for Alberta.”
Power Minister Brian Jean mentioned the federal government respects the regulator’s “rigorously thought-about determination on this software,” noting it isn’t an software to mine.
He mentioned Northback shall be answerable for reclamation associated to the exploration work.
“We reiterate our dedication to guard Alberta’s waters and make sure that any growth within the japanese slopes is completed to the very best environmental requirements,” Jean mentioned in an announcement Thursday.
The choice adopted days of public hearings in December and January, in addition to a non-binding vote final 12 months within the close by group of Crowsnest Move. About 72 per cent of voters mentioned they have been in favour of the challenge.
The regulator notes that issues have been raised within the hearings that granting exploratory permits would result in a full-blown coal mine. It says that chance couldn’t be factored into the decision-making course of.
“Exploration is just one step taken by a useful resource firm within the lengthy and complicated sequence of actions which will or could not result in the event of a mine,” the choice says.
“Accepting the necessity for this exploration program doesn’t represent approval of a coal mine.
“If, sooner or later, Northback decides to proceed with mine purposes at Grassy Mountain, it should observe a rigorous regulatory course of that each one useful resource growth purposes should observe.”
Situations connected to the exploratory permits require the corporate to eliminate drilling waste to the regulator’s satisfaction, observe erosion management and weed administration plans, and cling to beneficial environmental mitigation measures.
The corporate’s permits are legitimate for 5 years, with the final three years to be put aside for reclamation work.
With information from Lisa Johnson in Edmonton and Invoice Graveland in Calgary.
© 2025 The Canadian Press
