Review of oilsands cleanup funding program needs public input, says Alberta NDP
Alberta's New Democrat Opposition says a government review of the program that's supposed to ensure oilsands companies can clean up their mines was conducted too privately and should have been done in public.
Environment critic Marlin Schmidt said Albertans now know even less than before the review of the Mine Financial Security Program began.
"Given how much money is at stake and how important this sector is to our economy, the fact the public was completely shut out of this process is really concerning," he said.
Alberta's United Conservative Party government wrapped up consultations this month on how industry financially backstops its cleanup obligations.
It held a yearlong series of meetings with industry and First Nations. No public input was sought.
Estimates of the environmental liability of the mines and their tailings ponds vary widely. Official figures peg it at $34 billion, while an internal estimate from Alberta Energy Regulator staff put it at $130 billion.
The government currently holds no more than four per cent of the security required for a cleanup. Even that level of public disclosure has now been obscured, Schmidt said.
Schmidt said that during the program review, the government changed its rules on how companies must ensure their cleanup obligations can be met. Instead of relying on lines of credit or other forms of capital, the totals of which were made public, companies can now provide demand bonds from insurance companies.
The number of companies using such bonds and the size of the liability they insure against is not released, even on an aggregate basis.
"We need to have a simple accounting of how much money is available to cover liability," Schmidt said. "If the government and industry won't tell us how much of the liability these demand bonds cover, how will we know if the financial security program is working?"
Thomas Schneider, associate professor of accounting at Toronto Metropolitan University, said accepting insurance instead of requiring resources to be set aside allows producers to delay reserving the billions of dollars the cleanup would take even as some mines approach end of life.
The program review was called after two scathing reports from Alberta's auditor general. But First Nations consulted during the review have said the government's current direction holds on to most of the old program's mistakes and makes some new ones — including failing to account for changes in the oil market as countries move to low-carbon economies.
An analysis of the government's direction by University of Alberta energy economist Andrew Leach, who acted as a consultant to the First Nations, concluded the assumptions used in the government's modelling of the industry's future "provide a false and dangerous sense of security."
A spokesman for Alberta Environment and Protected Areas said the government expects to complete its review this year and begin implementing changes — "if any" — in 2024.
The department did not immediately respond to a request for an explanation of why the review shut out the public.
Schmidt said the process needs to open up. Proprietary business information can be kept confidential, he said.
"We're generally good at what needs to be protected and what doesn't," he said.
"Every mine, at some point, will have to end its operations. We need to have a plan for making sure there's enough money in the bank to cover those liabilities.
"We can't make that mistake, especially considering how big the bill to taxpayers will be if we get this wrong."
This report by The Canadian Press was first published Jan. 27, 2023.
CTVNews.ca Top Stories
Former homicide detective explains how police will investigate shooting outside Drake's Bridle Path mansion
Footage from dozens of security cameras in the area of Drake’s Bridle Path mansion could be the key to identifying the suspect responsible for shooting and seriously injuring a security guard outside the rapper’s sprawling home early Tuesday morning, a former Toronto homicide detective says.
Federal government grants B.C.'s request to recriminalize hard drugs in public spaces
The federal government is granting British Columbia's request to recriminalize hard drugs in public spaces, nearly two weeks after the province asked to end its pilot project early over concerns of public drug use.
Stormy Daniels describes meeting Trump during occasionally graphic testimony in hush money trial
Stormy Daniels took the witness stand Tuesday at Donald Trump's hush money trial, describing for jurors a sexual encounter the porn actor says she had with him in 2006 that resulted in her being paid off to keep silent during the presidential race 10 years later.
MPs agree Canadian gov't should improve new disability benefit
The federal government needs to safeguard the incoming Canada Disability Benefit from clawbacks and do more to ensure it actually meets the stated aim of lifting people living with disabilities out of poverty, MPs from all parties agree.
Bye-bye bag fee: Calgary repeals single-use bylaw
A Calgary bylaw requiring businesses to charge a minimum bag fee and only provide single-use items when requested has officially been tossed.
CFL suspends Argos QB Chad Kelly at least nine games following investigation
The CFL suspended Toronto Argonauts quarterback Chad Kelly for at least nine regular-season games Tuesday following its investigation into a lawsuit filed by a former strength-and-conditioning coach against both the player and club.
Boy Scouts of America changing name for first time in 114 years, aiming for inclusivity
The Boy Scouts of America is changing its name for the first time in its 114-year history and will become Scouting America. It's a significant shift as the organization emerges from bankruptcy following a flood of sexual abuse claims and seeks to focus on inclusion.
opinion Tom Mulcair: Trudeau's handling of Poilievre's 'wacko' House turfing a clear sign of Liberal desperation
When Speaker Greg Fergus tossed out Pierre Poilievre from the House last week, "those of us who have experience as parliamentarians simply couldn't believe our eyes," writes former NDP leader Tom Mulcair in his column for CTVNews.ca
New charges for Ont. woman who previously admitted to defrauding doulas
The Brantford, Ont. woman who was previously sentenced to house arrest after admitting to deceiving doulas has been charged again in connection to a new victim.