Alberta government pays out $95 million to end another coal policy lawsuit
Global News
The companies suing the province argue their land was expropriated after Alberta suddenly reinstated its long-standing coal policy in 2022, less than two years after it was lifted.
The Alberta government is paying out $95 million to a coal mining company to end another one of the lawsuits launched against it over its policy flip-flop more than two years ago.
The settlement with Evolve Power brings Alberta’s overall payout so far to nearly $240 million, as a separate agreement reached with another company, Atrum Coal, earlier this year saw the government pay $143 million.
A notice published by Evolve Power, previously known as Montem Resources, to its shareholders last week says it is surrendering two coal leases to the government as part of the deal.
“The board of directors, based on legal advice, believe this settlement is the best possible outcome having regard to the government’s actions and the impact on Montem,” the notice reads.
Like the settlement with Atrum Coal, the province is paying Evolve most of the settlement amount immediately, while $1.5 million will be paid out after the company completes some reclamation work at one of the sites it’s giving up.
“These reclamation activities are underway and are scheduled to be completed by the end of 2025,” the notice says.
It adds that Evolve’s board will soon meet to vote on dividend amounts to be paid to shareholders.
Energy Minister Brian Jean’s office, in a statement, said the province has no plans to re-lease the land surrendered by Evolve Power, but the government can’t provide further details on the terms of the settlement.
