In mid-January, when the province suddenly lifted a ban on new coal exploration and development on the eastern slopes, Premier Danielle Smith told Albertans the decision was made to protect them from lawsuits filed by five coal companies.
The companies are seeking what adds up to $15 billion in damages for sunk costs and lost revenue after the government scrapped the 1976 Coal Policy in 2020 and then issued dozens of new coal leases.
In 2021, less than two years later, the province reinstated the policy. Coal companies went running to their lawyers. The province is now facing lawsuits from five different companies.
Lawyers Still Circling
Danielle Smith’s judgement that lifting the coal ban would make the province’s legal troubles go away has proven wrong. The coal lawsuits are set to start April 28, 2025.
Chris Spearman, former Mayor of Lehtbridge and co-founder of the group Water For Food, believes the coal companies are banking on the Alberta government settling out of court.
“They know that the government is desperate to avoid testifying under oath,” Spearman told The Rockies.Life in a Zoom interview.
A Company With No Assets
Atrum Coal Ltd. is an Australian company with no active mines. It’s one of the companies suing the Alberta government. David Thomas, a journalist for the Crowsnest Headwaters, notes in a blog post that Atrum’s coal leases on the eastern slopes have not been proven, their property has no rail or road access. The company also has zero revenue.
In other words, Atrum has no real assets.
“They are betting that the Alberta government will be foolish enough to give them a big payout on Atrum’s only asset: A lawsuit against the taxpayers of Alberta,” Thomas writes.
The company’s 2024 fourth-quarter cash flow report shows no income.
It also shows legal costs totalling more than $1 million related to the lawsuit against Alberta taxpayers, with legal fees of $82,000 being paid directly to one of its own board directors Konrad De Kerloy, an Australian lawyer specializing in commercial disputes and dispute resolution..
Chris Spearman says Atrum looks like a company gearing up to fleece Albertans in court.
Put Danielle Smith on the Stand
“We want [Energy and Minerals Minister] Brian Jean and Danielle Smith in court to defend their actions, so the public can learn what was promised to these companies behind closed doors,” Spearman says. “Albertans will be the ones paying any settlements.”
As previously reported, dozens of coal industry lobbyists were meeting with government officials prior to the 2020 decision to axe the old coal policy. The public was left in the dark, resulting in a huge backlash that forced the province to walk back the decision.
“We have written literally hundreds of letters to Brian Jean and Danielle Smith and haven’t gotten a single response,” Spearman says. “I believe in my heart that most Albertans want honesty and transparency, and we’re not getting it from the UCP government.”
