What Can Be Done When A Regulatory Approval Is Granted And Then Withdrawn Following A Change In Government?

In Eagleridge International Ltd. v. Newfoundland and Labrador (Environment and Conservation) 2018 NLSC 180, following a change of government, the new Minister of Environment and Conservation withdrew approval for the construction of a gravel road intended to facilitate mineral exploration on lands for which mining licences were held and ordered that the project be subject to a full environmental assessment (EA). The licence holder, and project proponent, Eagleridge had already delivered an Environmental Preview Report as required by the previous government, and during the period awaiting approval had incurred approximately $400,000 in expenses including the cost of meeting the conditions for approval. The conditions included an Environmental Effects and Monitoring Plan and a Rare Lichen survey. A group of interested citizens appealed the previous government's decision to release the project from a full EA. That appeal was filed with the Minister outside the limitation period, the Minister did not issue a decision on the appeal within the prescribed period and there was no express statutory authority to place the appeal "on hold" during this time. Over a year after the appeal had been filed, the Appellants wrote the new Minister requesting a decision on the Appeal. During that time frame, Eaglebridge continued to expend money on the project. The new government advised Eagleridge that the appeal would be revived. Eagleridge filed written submissions respecting the revived appeal process, but the decision to release the project from a full EA was nevertheless overturned by the new government without addressing the objections raised by Eagleridge. The rationale provided by the Minister focussed on the effects of the project on the biophysical and socio-economic environments of the project area, significant public concerns and the recommendations of the Environmental Assessment Committee which had issued the guidelines for the original Environmental Preview Report.

Decision

The reconsideration of the appeal as a device to reverse the previous Minister's decision to release the project from a full EA was a breach of natural justice as Eagleridge was denied any opportunity to state its case and the decision to revive the appeal was without reasons or rationale. The reconsideration of the appeal was without statutory authority and was quashed. Had the judgment stopped there it would have been a matter- of -fact administrative law opinion. However...