The Alberta Energy Regulator approved Northback’s exploration program on Grassy Mountain. Now what?
May 15, 2025
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On May 15, the Alberta Energy Regulator approved Northback Holdings Corporation’s applications for a coal exploration program, a deep drilling permit, and a temporary water diversion licence on Grassy Mountain.
What was the basis for the AER’s decision?
The AER believes that “The Exploration Program will contribute to the ongoing evaluation of this coal resource and, based on [AER’s] assessment, will do so in an orderly, efficient, and environmentally responsible manner. The program will have positive social and economic impacts. Therefore, the Exploration Program is consistent with our mandate under REDA and the purposes of the Coal Conservation Act, Public Lands Act, and the Water Act and is in the public interest.”
The AER noted that in making their decision, any potential future coal mine and its impacts were considered outside of the proceeding’s scope, despite Northback making clear this exploration program was a necessary precursor to eventually mining the site.
What does this mean?
Northback can conduct its 105-day exploration program on Grassy, where it will drill 33 boreholes into the mountain to collect more data about its coal deposits.
Critically, Northback does not have approvals for a coal mine.
While AWA is disappointed in this outcome, it’s important to recognize everyone’s efforts have not been in vain.
Because of public pressure and concern, the exploration application approved today is not the same one that was first submitted to the regulator back in 2023. Northback has been forced to scale back their drilling efforts, reducing the number of boreholes on public lands and removing new roads and drill pads from their original plans. This would have required further clearcuts and increased human footprint in the region.
What’s next?
The fight is not over. Eventually, Northback will have to put new applications for a commercial coal mine in front of the regulator.
When this happens, the AER will not be able to avoid addressing all of the negative environmental, societal, and economic impacts associated with coal mining that were raised throughout the latest public hearing, or the joint review panel before that.
Let’s be ready; third time’s the charm.