In 1976, the Progressive Conservative government under Premier Peter Lougheed introduced the Coal Development Policy, which governed coal exploration and development in Alberta by classifying land into four categories: Category 1, where no exploration or development was allowed, to Category 4, where all exploration and development, both surface and underground, could be approved if appropriate.
The Policy blocked surface coal mines on a wide swath of the foothills of the Rocky Mountains, and the headwaters of Alberta's major watersheds.
On June 1, 2020, the United Conservative government under Premier Jason Kenney rescinded the 1976 Coal Policy, removing restrictions on coal exploration and development on three of four land categories based on environmental sensitivity. and began issuing leases to coal companies. Only Category 1 lands remained protected, while Category 2 lands-including the environmentally sensitive Livingstone Range-were opened to potential coal development. The revocation affected approximately of previously restricted land, sparking public backlash and legal actions.
In response, the government reinstated the 1976 policy and imposed a moratorium on coal exploration and development in early 2022. This temporarily halted new coal projects pending the completion of land-use planning in the Eastern Slopes of Alberta's Rocky Mountains.
These policy changes led to ongoing legal challenges from coal companies with the first multi-billion-dollar lawsuits filed by coal companies in July and September seeking damages from the Alberta government.
In January 2025, Energy and Minerals Minister Brian Jean lifted the moratorium on coal exploration and development that had been in place since March 2022, opening approximately of previously restricted, environmentally sensitive land—excluding Category 1 areas such as parks, wilderness areas, and wildlife sanctuaries—to potential coal projects. The government said the decision aimed to "reduce regulatory confusion" around coal mining. Made without public consultation, the move reignited debate, with environmental groups, First Nations, and members of the public voicing strong opposition over concerns about water contamination from selenium, habitat destruction, and threats to wildlife.
At a January 2025 press conference, Premier Danielle Smith defended lifting the coal exploration ban, citing the need to protect taxpayers from over $15 billion in potential damages sought by five coal companies. However, at least one lawsuit remains active, suggesting the policy change may not fully mitigate legal risks. The ongoing disputes reflect the challenges of balancing resource development, environmental protection, and fiscal responsibility in Alberta's energy policy.
 The Alberta Court of Appeal has granted the Municipal District of Ranchland leave to appeal the AER's decision, indicating that there are serious, arguable issues with the regulator's interpretation of coal development regulations. Meanwhile, the government has initiated consultations with industry players on implementing the new coal regulations. The ongoing controversy highlights broader tensions between economic development, environmental protection, and government transparency in Alberta's resource sector.
Selected timeline of events.
Status of GMCP as an "advanced project".
The legal status of Northback's proposal for the Grassy Mountain Coal Project is currently under scrutiny due to conflicting interpretations of its "advanced project" designation. Northback Holdings Corporation, previously known as Benga Mining Ltd., has resubmitted a proposal for the Grassy Mountain project after it was initially rejected by both federal and provincial regulators in 2021 on the grounds that it was not in the public interest.
Energy Minister Brian Jean has asserted that once a project is classified as advanced, it retains that status regardless of previous rejections, stating, "Once a project is considered an advanced project it remains as one". This position is supported by the AER, which indicates that a letter from the minister carries significant weight in guiding their decisions.
However, legal experts, including Nigel Bankes from the University of Calgary, argue that the original project is effectively "legally dead" due to its previous denials and should not be considered for new applications.
The situation has escalated with public hearings taking place to assess Northback's proposal amidst considerable opposition from environmental groups and local residents concerned about potential impacts on land and water resources. Additionally, the Alberta Court of Appeal is set to hear arguments regarding whether Northback's application should be allowed to proceed under the current legal framework.
The legality of Northback's proposal hinges on interpretations of regulatory definitions and past decisions. While the Alberta government and AER maintain that it qualifies as an advanced project, significant opposition and legal challenges suggest that this classification may be contested in court. The outcome will depend on judicial interpretations of regulatory authority and the implications of previous denials.
There are a number of legal challenges related to coal mining in Alberta—both for and against policies and projects. In 2021, both provincial and federal regulators rejected the proposal for an open-pit mine, citing significant environmental concerns, particularly regarding the Oldman River watershed. Despite this setback, Rinehart has persistently sought to overturn the decision.
Rinehart through her company's subsidiary, Northback has initiated multiple lawsuits against Alberta and federal governments, challenging regulatory processes.
Lawsuits submitted by coal companies and their supporters.
In July 2022, Cabin Ridge filed a $CDN 3.441-billion lawsuit saying that the company's reliance on the province's rescission of the 1976 coal policy implied that "that there were no unique restrictions to developing a metallurgical coal project. In September 2022, Elan also filed its multi-billion-dollar lawsuit at Calgary's Court of King's Bench. 
Northback filed its first lawsuit against the federal and Alberta governments in June 2024.
Nigel Bankes, professor emeritus of law at the University of Calgary, said that the Alberta government had created an "open season for coal development" which would possible "knock[...] the foundation out" from these lawsuits.
First Nations supporting GMCP.
The Stoney Nakodaconsisting of three First Nationsand Piikani, signatories to Treaty 7, on whose land the GMCP is located, challenged the federal government's 2021 denials of the project. If the project proceeds the Stoney Nakoda and Piikani Nations would receive "project-specific economic and social benefits" from Benga through confidential impact benefit agreements they entered into with Benga.
Lawsuits submitted by coal mine opposition.
There are a number of legal challenges related to Grassy Mountain. The Municipal District of Ranchland's appeal against the Alberta Energy Regulator's decision to accept Northback Holdings' applications for exploration permits.
Benga Mining Limited (now Northback Holdings) and two First Nations' judicial review applications of the federal decisions rejecting the project.
There was an appeal before the Alberta Court of Appeal regarding the definition of an "advanced coal project" and the Energy Minister's influence on the AER's decision.
Ongoing litigation by Benga/Northback, Piikani Nation, and Stoney Nakoda Nations seek to overturn the provincial decisions that denied approval for the project.
The Federal Court case involving three applications for judicial review of the federal government's refusal to issue environmental assessment approvals.
Key issues.
Environmental concerns.
Coal mining in the Eastern Slopes of the Rocky Mountains poses significant threats to the water supply, impacting both water quality and quantity. Open-pit coal mining leaches toxic elements, particularly selenium, into water sources. As of 2025, there is no proven effective method exists to prevent this contamination. Concerns about water pollution include the fact that open-pit coal mining leaches toxic elements, particularly selenium, into water sources. Selenium contamination causes deformities, nerve damage, and reproductive failure in fish, mammals, and migratory birds. Coal mining operations require large amounts of water, potentially diverting it from other uses.[5]. This could lead to water shortages for farmers, ranchers, and communities, especially during drought years. The Eastern Slopes are the headwaters for major rivers that supply water to millions across Alberta, Saskatchewan, and Manitoba.
Contamination could affect drinking water, food production, recreation, and ecosystems throughout the Prairies. Toxic tailings from mining pose substantial risks to long-term consequences for downstream environments. Once selenium is released into water, it is extremely difficult to mitigate its effects on water quality and aquatic ecosystem health. Tailing dam failures, though rare, can have extreme impacts on downstream water quality. Air-borne contaminants from mining activities can affect residents and communities far from mine sites.
Stranded assets.
Both the 2021 Joint Review Panel and the University of Calgary Public Policy paper submitted to the Alberta Coal Policy Committee suggest that the risk of stranded assets arises from the potential for declining coal prices, the practice of extracting the best ore first, and the possibility that companies may become insolvent or unable to meet reclamation obligations. This can lead to financial liabilities being transferred to the public, particularly in the form of reclamation costs. As with orphan well where the province is struggling with billions of dollars in environmental liabilities, and the Grassy Mountain project could add to these financial burdens, which would be passed on to future generations. The JRP cited concerns of the Livingstone Landowners Group cautioned that under basic corporate law, a parent and subsidiary are different companies, and that the parent is not liable for the subsidiary's debts and obligations. In the Grassy Mountain Coal Project, for example there is risk that Northback Holdings would not take financial responsibility for stranded assets.
Political debate.
Blair Painter, who is mayor the municipality of Crowsnest Pass, supports the GMCP.
Landowners and ranchers in the area affected are against the project. This includes the Livingstone Landowners Group. The Canadian Parks and Wilderness Society have submitted a brief to the JPR and are considered legal action.
The Council of Canadians raised concerns that the GMCP poses significant risks to Canada's environment, Indigenous communities, and human health.
Citations.
A
B
C
D
F
G
I
J
L
M
N
R
S
T
V
W
Z