Province pays $95 million to end coal lawsuit
Evolve returns Chinook leases in Crowsnest Pass as total settlements near $240 million
The province agreed to pay $95 million to Evolve Power Ltd. to resolve the company’s lawsuit over Alberta’s coal policy reversals, with Evolve surrendering coal leases at its Chinook project in the Crowsnest Pass and the Greenfield project near Hinton. The company will also transfer mineral and surface rights tied to those projects to the Government of Alberta.
Canadian Press reporting indicates the latest payout brings total settlements tied to the multiparty litigation to nearly $240 million, following a separate deal earlier this year in which Atrum Coal Ltd. dropped its claim and returned leases in exchange for $142.8 million. Evolve told shareholders it believes the agreement is the best outcome for investors.
Energy Minister Brian Jean’s office said the government is seeking to conclude the lawsuits fairly while protecting Albertans’ interests and has no plans to re-lease the land Evolve returned. The office did not release detailed terms of the settlement.
Evolve, formerly Montem Resources, has long held a suite of steelmaking coal properties in the Pass, including Chinook, 4-Stack, Isola, Oldman and the idled Tent Mountain site. The company previously explored repurposing Tent Mountain as a pumped hydro energy storage project, reflecting a shift in its broader strategy.
The Chinook project sits in the Crowsnest Pass and was shelved amid the province’s shifting rules on new coal development. With the settlement, Evolve’s Chinook leases are being surrendered back to the Crown along with related rights.
The court fight grew out of Alberta’s policy flip-flop that began in 2020 when the government rescinded the 1976 Coal Policy, prompting a public backlash and a 2021 reversal followed by a 2022 moratorium on coal exploration in the Eastern Slopes. In January 2025 the government formally rescinded ministerial orders that had restricted coal activity and confirmed the 1976 policy framework as the touchstone for decisions, returning to land category rules that govern where mines can be built.
Five companies initially sought close to $16 billion in damages over sunk costs and alleged de facto expropriation tied to the policy swings. With two settlements in place, reporting now pegs remaining claims at roughly $10 billion. The province has said it will not re-lease land surrendered in the settlements.
Locally, coal remains a live file. In May the Alberta Energy Regulator approved Northback Holdings’ new exploration program at Grassy Mountain, allowing additional drilling and data collection under conditions. On Oct. 2 the Supreme Court of Canada dismissed Northback’s application for leave to appeal in a separate challenge over the regulator’s earlier decisions, leaving the lower court rulings in place.
What this means for the Pass is immediate certainty on the Chinook leases since they are returned to provincial control, combined with continued activity at Grassy Mountain limited to approved exploration work. The government’s statement that it does not plan to re-lease the Evolve lands suggests there is no near-term path to revive Chinook under a different proponent.
The settlements do not resolve the broader legal or policy debate that began in 2020. The government has anchored its current approach to the 1976 Coal Policy and land categories, while critics of new mining in the Eastern Slopes continue to point to headwaters protection and long term impacts. For communities like the Crowsnest Pass, the near term effect of this week’s deal is that the Chinook ground is off the table while exploration continues at Grassy Mountain within the regulator’s conditions.