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The Department of Fisheries and Oceans decided the assessment would study the impact in an area surrounding the creek, but the environmental groups wanted the review to include the entire 200 square kilometres affected by the project.

They expressed concern that half of a wetland area that serves as critical migratory bird habitat would be destroyed, and that fish in the Athabasca River would be threatened.

"Obviously we're disappointed with the decision of the Supreme Court not to hear our appeal to the Federal Court's decision regarding how the Department of Fisheries and Oceans scoped the Fort Hills oilsands mine," said Dan Woynillowicz of the non-profit Pembina Institute.

"We certainly hope that in the future the federal government won't continue to use the discretionary loopholes that exist within the Environmental Assessment Act to shirk its responsibility from protecting the interests of all Canadians as it relates to whether and how the oil sands will be developed."

The Federal Court of Canada dismissed the coalition's bid for a judicial review in late 2004, with the Federal Court of Appeal upholding that decision earlier this year.

The oilsands project includes plans for an open pit mine, and extraction and processing plants.

Woynillowicz said his organization would now focus on ensuring the Canadian Environmental Assessment Act is reformed and strengthened.

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