TransCanada Alleges Keystone Rejection Violated NAFTA, Seeks $15B

TransCanada argued that the rejection was improper because it was a "symbolic gesture" rather than a decision based on the project's merits.

(AP Photo)
(AP Photo)

TransCanada is seeking more than $15 billion in damages in one of two challenges to the Obama administration's rejection of the Keystone XL pipeline.

One filing argued that the rejection violated the terms of the North American Free Trade Agreement, an action that could allow the Canadian energy giant to be compensated for the lost value of its investments.

A lawsuit filed in federal court in Houston, meanwhile, alleged that the administration exceeded its constitutional authority in denying the project and asked the court to overturn the decision.

The Obama administration in November rejected the controversial project — which pitted the energy industry and congressional Republicans against environmental advocates and most Democrats — more than seven years after it was proposed by TransCanada.

President Obama cited a State Department review that indicated that the project would not serve the national interest. He added that approving the pipeline, which would link Canadian oil reserves to refineries on the Gulf Coast, would "undercut" the nation's message on climate change ahead of a crucial UN conference in Paris.

(AP Photo)(AP Photo)

TransCanada is seeking more than $15 billion in damages in one of two challenges to the Obama administration's rejection of the Keystone XL pipeline.

One filing argued that the rejection violated the terms of the North American Free Trade Agreement, an action that could allow the Canadian energy giant to be compensated for the lost value of its investments.

A lawsuit filed in federal court in Houston, meanwhile, alleged that the administration exceeded its constitutional authority in denying the project and asked the court to overturn the decision.

The Obama administration in November rejected the controversial project — which pitted the energy industry and congressional Republicans against environmental advocates and most Democrats — more than seven years after it was proposed by TransCanada.

President Obama cited a State Department review that indicated that the project would not serve the national interest. He added that approving the pipeline, which would link Canadian oil reserves to refineries on the Gulf Coast, would "undercut" the nation's message on climate change ahead of a crucial UN conference in Paris.

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