TransCanada seeks NAFTA damages in Keystone XL rejectionStaff writer ▼ | June 27, 2016
TransCanada Corp is requesting arbitration over U.S. President Barack Obama's rejection of the Keystone XL pipeline, seeking $15 billion in damages, the company said in legal papers.
Pipeline To "reach an amicable settlement"
"Unfortunately, the parties were unable to settle the dispute."
TransCanada said it then filed its formal arbitration request under North American Free Trade Agreement (NAFTA) provisions, seeking to recover what it says are costs and damages, Reuters reports.
The Keystone XL was designed to link existing pipeline networks in Canada and the United States to bring crude from Alberta and North Dakota to refineries in Illinois and the Gulf of Mexico coast.
Obama rejected the cross-border crude oil pipeline last November, seven years after it was first proposed, saying it would not make a meaningful long-term contribution to the U.S. economy.
TransCanada is suing the United States in federal court in a separate legal action, seeking to reverse the pipeline's rejection. ■