Indigenous Nation challenges Alberta’s failure to hold industry accountable for oil sands cleanup

Press Release

April 3, 2025

CALGARY/TERRITORIES OF THE BLACKFOOT AND PEOPLES OF TREATY 7, HOME TO MÉTIS NATION OF ALBERTA, REGION III) — On April 1, 2025, the Athabasca Chipewyan First Nation (ACFN) filed a judicial review of Alberta Environment and Protected Areas’ decision to renew the rules for the Alberta’s Mine Financial Security Program (MFSP) without addressing critical flaws that were identified and shared with Alberta during its review of the Program from 2022 to 2024..

Ecojustice lawyers are representing ACFN in this case.

The Nation argues that the MFSP fails to protect Albertans from bearing the massive costs of oil sands mine cleanup, while also failing to protect Treaty nations like ACFN from long-lasting oil sands pollution.

Oil sands production already severely impacts ACFN, dramatically impairing the Nation’s ability to exercise its Treaty rights to travel, hunt, fish, and trap in its traditional territories. Alberta has a legal responsibility to Indigenous Nations like ACFN when making decisions about how to ensure this industry cleans up its mines and reclaims the land in years to come.

Hazel Mercredi, Athabasca Chipewyan First Nation Acting Chief said: “Without a properly funded program, industry will be able to walk away from their leases — leaving the mess behind for First Nations communities to live with. This is something that all Albertans should care about because it is an expense that will fall to taxpayers after industry has finished extracting billions of dollars in revenue — leaving you with the bill.”

ACFN consultant Martin Olszynski adds: “Along with other Athabasca Region First Nations, ACFN invested significant time and resources into the 2022 review of the MFSP, identifying numerous fundamental flaws but also proposing several practical solutions. Then, after almost two years of delay, Alberta announced minor changes that ignore these fundamental flaws — and did so without any justification or explanation.”

Despite repeated warnings and recommendations about the major flaws with the province’s Mine Financial Security Program from Alberta’s Auditor General and several Indigenous Nations — including ACFN — no significant improvements to the Program have been made.

Ecojustice lawyer, Matt Hulse says the oil sands industry is taking full advantage of this flawed scheme: “The fact that polluters should pay to clean up after themselves is something that we can all agree on. However, when it comes to one of Canada’s most environmentally destructive industries, the MFSP provides no guarantee that this will happen. Oil sands companies have taken full advantage of this flawed system, together contributing less than $1 billion in financial security against estimated clean-up costs of at least $57 billion dollars — with the Alberta Energy Regulator’s own leaked internal estimates putting this figure at least $130 billion.”

By not holding industry to account for oil sands cleanup, Alberta is failing to protect the public interest — creating risk of astronomical public costs and lasting pollution.

BACKGROUND

• The Athabasca Chipewyan First Nation (ACFN) is a Dene community whose traditional territories are located in what is now known as northeastern Alberta.
• ACFN is a signatory to Treaty 8, which grants them constitutionally protected rights to carry out their traditional way of life.
• The oil sands are located in ACFN’s territory and their reserves and primary community (Fort Chipewyan) is located downstream of the oil sands. For decades, ACFN has been an advocate for stronger regulations to protect its land and members from the harmful pollution from the oil sands.
• The MFSP requires mine owners in Alberta to provide financial security to the provincial government to ensure the cleanup of their coal and oil sands mine sites. The program aims to protect the public from paying for the costs of mine closure, but according to many experts, is unfit for purpose and creates a serious risk that a) these mine won’t get cleaned up properly and b) Albertans will pay the cost of this cleanup.
• Following two critical reports from the Auditor General about the MFSP (2015 and 2021), Alberta undertook a year-long review of the MFSP in 2022. ACFN engaged extensively in this review with a coalition of regional First Nations and identified several critical issues with the Program. For example, the MFSP:
• overestimates the value of assets of oil sands operators,
• underestimates the liabilities of oil sands mines,
• fails to effectively incentivize the progressive remediation of the oil sands; and
• is not prepared for potential structural changes to oil markets (e.g. a sharp or long-term decline in oil demand that affects the industry as a whole).
• In November 2022, ACFN and the coalition of Nations submitted recommendations to amend the MFSP.
• On October 3, 2024, Alberta renewed the rules for the MFSP without addressing the fundamental issues with the program or substantively responding to ACFN’s concerns.
• We are challenging the Director’s decision on several grounds, including inconsistency with Alberta’s environmental law and breach of ACFN’s constitutional and Treaty rights.

ABOUT

The Athabasca Chipewyan First Nation are K’ai Tailé Dené, the “people of the land of the willow.” This name signifies ACFN’s deep connection to their traditional territories, which are centered on the Peace-Athabasca Delta in what is now known as northeast Alberta. ACFN signed Treaty 8 in Fort Chipewyan in 1899 and continues to exercise their Treaty rights and maintain their cultural identity.

Ecojustice uses the power of the law to defend nature, combat climate change, and fight for a healthy environment. Its strategic, public interest lawsuits and advocacy lead to precedent-setting court decisions and law and policy that deliver lasting solutions to Canada’s most urgent environmental problems. As Canada’s largest environmental law charity, Ecojustice operates offices in Vancouver, Calgary, Toronto, Ottawa, and Halifax.

Media Contacts

Jay Telegdi | Athabasca Chipewyan First Nation
(780) 881 – 7062, Jay.telegdi@acfn.com

Cari Siebrits, Communications Strategist | Ecojustice
(647) 602 – 1212, csiebrits@ecojustice.ca

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