Northback Holdings’ Response re: the Grassy Mountain Coal Project Water Licence Application

April 27, 2026

On April 10, 2026, Alberta Wilderness Association submitted a Statement of Concern (SOC) to the Alberta Energy Regulator (AER) on Northback Holdings’ application for a water term licence for the Grassy Mountain Coal Project.

AWA requested the licence be denied, on the basis that the South Saskatchewan River Basin (SSRB), in which Grassy Mountain is located, has been closed to new water licences since 2007 following the widespread recognition that the watershed had been overallocated; its average natural flow is no longer sufficient to sustain both the instream flow needs of the river and the human demands for water.

The SOC was accepted and registered by the AER on April 13, which requires that Northback respond to the concerns raised.

We received Northback’s response on April 27, 2026.

Among other issues, AWA asked Northback to answer the following:

What is the total water balance anticipated for this Project, inclusive of all requirements for the mine site, waste piles, coal processing plant, conveyers, load-out, railyard, and access roads?
What is the frequency of release, volume, and quality of return flows anticipated?
What is protocol during drought conditions, when no water can be collected through drainage?
Why should this Project in particular be exempted from the near 20-year old basin closure over others?

Northback deferred answering these questions, instead stating,

“Northback wishes to emphasize that applications #33861749 and #33861750 are in support of the forthcoming integrated application for the Grassy Mountain Project (the Project) (Northback, 2026). Once submitted, the integrated application will include details relating to the Project’s water management system, water demand calculations, proposed monitoring and mitigation plans, Water Act applications, and an environmental impact assessment.”

In our SOC, AWA noted that the application was incomplete and could not be evaluated by the AER without these accompanying details and documents. Why Northback chose to submit this request for a water licence ahead of the entire integrated application is unclear, as too much information is unknown for an informed decision to be made.

Northback’s response confirms that they desire water to be allocated to their coal project under 2003’s Oldman River Basin Allocation Order in the Water Act. As we argued in our SOC, the Water Allocation Policy for Closed River Basins in the South Saskatchewan River Basin Directive published in 2016 reaffirms that the Bow, Oldman and South Saskatchewan River Water Allocation Order from 2007 (which restricts allocating more water out of the watersheds) takes precedent over the Oldman River Basin Allocation Order.

The Directive “is mandatory for decision-makers with jurisdiction to allocate water in Alberta,” “provides clarification to Environment and Parks and the Alberta Energy Regulator,” and “affirms the government’s expectation… that applications for any new water withdrawals from the closed sub-basins will not be considered unless the applications fit within the specific exceptions in the [2007] Regulation”. The Directive lists the specific purposes for which reserved water can be allocated, which include:

For use by a First Nation (as defined in the Regulation) on a First Nation Reserve or for a project that is partially or wholly owned and operated by the First Nation on land that is owned and controlled by the First Nation and capable of being served by the basin in question;
For a water conservation objective;
For storage for the protection of the aquatic environment and for improving the availability of water to existing license holders or registrants; or
When a complete application for a license was filed with the Director prior to the Order being filed under the Regulations Act.

None of the identified uses include water for extractive, industrial purposes like Northback’s Grassy Mountain Project.