Athabasca Chipewyan First Nation Challenges Alberta Government Over Oilsands Cleanup

The Athabasca Chipewyan First Nation in northeast Alberta has taken the provincial government to court over its handling of the Mine Financial Security Program (MFSP), which is designed to ensure oilsands companies pay for the cleanup of their operations. The First Nation filed a judicial review application this week, claiming that the government’s decision to renew the rules for the MFSP in 2024 lacked meaningful consultation and disregarded the concerns of the ACFN regarding Treaty rights infringement.

The MFSP requires energy companies to make deposits to cover the costs of remediating oilsands and coal mine sites once they are decommissioned. With a third of ACFN members residing in Fort Chipewyan, downstream from oilsands operations, the community is directly impacted by the environmental consequences of these projects.

In their legal application, filed on April 1, the ACFN argues that the MFSP is inadequate in achieving its intended purpose and that the province has failed to address recommendations and concerns raised during a recent review. Acting ACFN Chief Hazel Mercredi expressed concern that without proper funding for the program, companies could abandon their leases, leaving the cleanup burden on First Nations communities.

Provincial auditor general Doug Wylie criticized the MFSP in 2021, highlighting the government’s insufficient $1.5 billion security for mining liabilities totaling $31.5 billion. A 2023 report from the University of Calgary’s School of Public Policy estimated liabilities between $45 billion to $130 billion, with only $2 billion in reserve.

Ryan Fournier, press secretary for Environment Minister Rebecca Schulz, defended the government’s changes to the MFSP in response to these concerns. He stated that the revisions were aimed at ensuring mine operators provide adequate security for reclamation without unfairly targeting the energy sector.

Ecojustice, an environmental law organization, is representing ACFN in the legal proceedings. Lawyer Matt Hulse argues that the government is failing in its obligations to ACFN under Treaty 8 and that maintaining a flawed program undermines Alberta’s environmental legislation.

The judicial review seeks a declaration that the province breached its duty to consult ACFN and requests an amendment to the MFSP within six months to address the Nation’s concerns. Additionally, it calls for an independently verified estimate of total oilsands liabilities and supporting analysis.

The court is set to hear the case on May 21 in the Fort McMurray Court of King’s Bench. ACFN also filed a lawsuit last year against the Alberta Energy Regulator, citing negligence and a failure to uphold Treaty obligations following tailings leaks at Imperial Oil’s Kearl facility.