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CALGARY - An oilsands developer involved in a contested project in northern Alberta says an aboriginal band has agreed to drop its lawsuit.
Athabasca Oil Corp. (TSX:ATH) says the Fort McKay First Nation has agreed to remove its objections to regulatory approval of the Dover Commercial project.
The band had won the right to challenge the go-ahead granted under new provincial rules that don't allow the Alberta Energy Regulator from hearing constitutional arguments.
The band argued that not being allowed to make its case before the regulator violated its aboriginal rights enshrined in the Constitution.
The Dover project would eventually produce 250,000 barrels a day and would be operated by Brion, a joint venture between Athabasca and Phoenix Energy Holdings Ltd.
