Jim,
I can't vouch for the accuracy of the newspaper report. However, doing training with a partially-filled tank is not uncommon up here. The water is very cold, so training dives are kept short. Often you can do two (or more) OW training dives on one AL80.
The water is cold and the vis can be poor, but it is the best vis you can hope for in the area.
The nearest dive shop would be located in Calgary. That is a four-hour round trip from Minnewanka to Calgary, not including filling times, if you need more air. Also, Minnewanka is located in a National Park. Parks Canada often imposes restrictions upon (or outright prohibits) the use of compressors within park limits.
I don't know where you are getting your info from. But there is no Instructor that I know in the Calgary area that takes students in the water with partially filled tanks for their o/w course. Plus in over 12 years of teaching at that site I have never seen any student use a tank for more than one dive. All the shops use al80 for training.
There seems to be a lot of guessing going on. No one knows what type of course it was. So stop playing monday night quarterback.