An Alberta judge has rejected a First Nation’s bid for a legal review of the program responsible for ensuring coal mine and oilsands operators possess the necessary funds to rehabilitate their operations. Justice Shannon Davis from the Court of King’s Bench of Alberta ruled on Wednesday that the Athabasca Chipewyan First Nation’s (ACFN) application for a review was dismissed because legal notice was not provided to all directly affected parties within the mandated six-month timeframe.
The ACFN had served notice only to the Alberta government, as their lawyers believed the dispute centered around the Crown’s duty to engage in consultations. However, Canadian Natural Resources, Suncor Energy, and Imperial Oil argued that they should have also been served due to their direct stake in any potential program changes. Justice Davis concurred with the companies during the hearing in Fort McMurray, emphasizing the strict adherence to the six-month timeline for filing and serving an originating application.
The ACFN had contested the Alberta Mine Financial Security Program (MFSP), which mandates that oilsands and coal mine operators possess the financial capacity to cover reclamation expenses post-closure. Instead of requiring full cleanup costs upfront, the MFSP allows oilsands operators to leverage an “asset-to-liability” method, where company assets can serve as collateral against future closure costs if they exceed liabilities by threefold.
As of June 30, 2025, liabilities stood at $52.7 billion, whereas the MFSP had amassed $2.6 billion in securities since its inception in 2011. The MFSP’s asset value was reported at $683 billion. Following a review of the program in 2022, the ACFN argued that the MFSP lacked proper management and failed to incentivize reclamation efforts throughout a mine’s lifespan.
In October 2024, the MFSP was reissued and later updated in December of the same year. The ACFN felt their concerns were not adequately addressed and initiated a judicial review in April 2025. Environmental law group Ecojustice represented the ACFN, expressing disappointment in the court’s dismissal and indicating that legal options are being considered.
Ecojustice lawyer Susanne Calabrese remarked on the court’s failure to address the ACFN’s concerns, reiterating the First Nation’s stance on Alberta’s constitutional duty to ensure proper reclamation of oilsands mines on their traditional lands. The Ministry of Environment and Protected Areas in Alberta mentioned that they are reviewing the decision, while representatives for Suncor, Canadian Natural Resources, and Imperial Oil did not provide comments on the matter.