Oilsands companies are restoring the funding of a group that helps develop environmental policy in the oilsands in northeast Alberta.

The Oilsands Developers Group is renewing the $5 million annual budget for the Cumulative Environmental Management Association after meeting with Alberta's environment minister Diana McQueen Tuesday.

"It's very pleasant news," said CEMA's executive director Glen Semenchuk. "It's a realization that they finally understand what we do."

That group was recently told it would only be getting half that amount.

CEMA is made up of more than 50 groups representing First Nations and Métis, all levels of government, environmental advocacy groups, educational institutions and oilsands companies.

But oilsands companies cut CEMA's funding in half last week, saying they believed CEMA had completed much of the work it set out to do when it was founded 12 years ago.

The environment department will also be reviewing what policy issues need to be addressed by CEMA, as a number of new initiatives get underway in the region.