An application by a First Nation in Alberta seeking a judicial review of the program overseeing the financial obligations of coal mine and oilsands operators for environmental cleanup has been rejected by a judge. Justice Shannon Davis of the Court of King’s Bench of Alberta ruled on Wednesday that the application was dismissed because the Athabasca Chipewyan First Nation (ACFN) did not provide legal notice to all relevant parties within the required six-month timeframe.
The ACFN had served notice only to the Alberta government, believing the dispute pertained to the Crown’s duty to consult. However, companies like Canadian Natural Resources, Suncor Energy, and Imperial Oil argued that they should have also been served as they would be directly affected by any potential changes to the program.
In his decision at a Fort McMurray courtroom, Davis sided with the companies, emphasizing the strict adherence to the six-month timeline for filing and serving an originating application. He stated that failure to meet this timeline is fatal to the case.
The ACFN’s challenge was directed at Alberta’s Mine Financial Security Program (MFSP), which mandates that oilsands and coal mine operators must have the financial means to cover reclamation costs when their operations cease.
Instead of requiring full upfront payment for cleanup costs, the MFSP allows oilsands operators to utilize 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, with the MFSP having collected $2.6 billion in securities since its inception in 2011. The program’s asset value was reported at $683 billion.
The province initiated a review of the MFSP in 2022, during which the ACFN raised concerns about the program’s efficacy and criticized past reports from the auditor general. The ACFN alleged that the program underestimates operators’ liabilities, fails to consider global market changes that could accelerate mine closures, and lacks incentives for reclamation throughout a mine’s lifespan.
Despite the MFSP being reissued in October 2024 and subsequently updated in December, the ACFN felt their concerns were not adequately addressed. This led them to file for a judicial review in April 2025.
The ACFN was represented by the environmental law organization Ecojustice, with lawyer Susanne Calabrese expressing disappointment over the court’s dismissal. Calabrese mentioned that legal options are being considered, emphasizing that the court did not address the ACFN’s core concerns.
The Alberta Ministry of Environment and Protected Areas stated that they are reviewing the judge’s decision, while legal representatives for Suncor, Canadian Natural Resources, and Imperial Oil did not provide comments upon request.