TC Energy Inc. has filed a formal request for arbitration under NAFTA rules, seeking $15 billion in compensation from the U. S. government for the money it spent on trying to develop the cancelled Keystone XL pipeline.
The company said in a statement late Monday that it has officially filed paperwork under a part of NAFTA rules that allows companies to seek compensation for lost investment. The case is moving ahead under NAFTA rules and not new ones made under its successor, the Canada-U. S.-Mexico Agreement (CUSMA), because it is a legacy case, and NAFTA was the trade law on the books when it started, said Erin LeBlanc, a lecturer at the Smith School of Business in Kingston, Ont.
"It's the largest claim for a Canadian organization against the U. S. government at $15 billion," she said, citing the figure first reported by Bloomberg of how much in damages the company is seeking.
U. S. President Joe Biden symbolically killed the pipeline on his first day in office earlier this year, the culmination of a multi-year saga under three U.S. presidents to build a pipeline to bring 900,000 barrels a day of crude oil from Alberta to refineries on the U.S. Gulf Coast.
The pipeline was proposed under the Obama administration, who ultimately rejected the application on environmental grounds. President Trump then revived the project, before Biden squashed it again.
Expert says politics played a role in the demise of Keystone XLUniversity of Calgary's Richard Masson says politics played a role at the death of the Keystone XL project pipeline. The Alberta government and TC Energy announced today the termination of the pipeline project. 3:38
Although TC Energy is trying to get compensation for the money it spent trying to develop the project, it has no intention of reviving the pipeline.
"As a public company, TC Ene... (Read more)
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