An Alberta judge has rejected a First Nation’s request for a legal review of the program responsible for ensuring that coal mines and oilsands operators have the financial resources to clean up their activities.
Justice Shannon Davis of the Alberta Court of King’s Bench ruled on Wednesday that the application for a review by the Athabasca Chipewyan First Nation (ACFN) was dismissed because the required legal notice was not served to all directly affected parties within the designated six-month timeframe.
The ACFN had only informed the Alberta government of the dispute, believing it to be related to the Crown’s duty to consult. However, major companies like Canadian Natural Resources, Suncor Energy, and Imperial Oil argued that they should also have been notified as they would be directly impacted by any changes to the program.
Justice Davis sided with the companies during the hearing in Fort McMurray, emphasizing the strict and inflexible nature of the six-month deadline for filing and serving legal applications. He stated that failure to meet this timeframe is fatal to the case.
The ACFN had contested the Alberta Mine Financial Security Program (MFSP), which mandates that oilsands and coal mine operators have the financial capability to cover reclamation costs upon closure.
Instead of requiring full upfront payment for cleanup, the program permits oilsands operators to use an “asset-to-liability” approach, where company assets can serve as collateral against future closure expenses if they exceed liabilities by threefold.
According to the Alberta Energy Regulator, as of June 30, 2025, liabilities amounted to $52.7 billion, while the MFSP had gathered $2.6 billion in securities since its inception in 2011. The reported asset value of the MFSP stood at $683 billion.
The program underwent review in 2022, with the ACFN criticizing its management and referencing past reports from the auditor general that raised concerns. The ACFN argued that the program underestimates operators’ liabilities, disregards changes in global oil markets that could accelerate shutdowns, and fails to promote reclamation efforts over a mine’s lifespan.
Despite the MFSP being reissued in October 2024 and updated in December of the same year, the ACFN felt its concerns were overlooked and thus sought a judicial review in April 2025.
Ecojustice, an environmental law organization, represented the ACFN in the case. Ecojustice lawyer Susanne Calabrese expressed disappointment at the court’s decision and mentioned that legal options are being considered. Calabrese highlighted that the court did not address the ACFN’s grievances.
The Ministry of Environment and Protected Areas in Alberta stated that they are reviewing the ruling. Legal representatives for Suncor, Canadian Natural Resources, and Imperial Oil did not provide comments when contacted.