(Bloomberg) — Developers of Keystone XL are seeking to recoup more than $15 billion in damages connected to President Joe Biden’s decision to yank a permit for the border-crossing oil pipeline even after construction began.

With a request for arbitration filed Monday, Calgary-based TC Energy Corp. formally opened one of the largest trade appeals ever against the U.S. and asked to put its long-running dispute over Keystone XL in front of an international arbitration panel. The legal claim is being mounted under provisions of the North American Free Trade Agreement that allow foreign companies to challenge U.S. policy decisions.

“The U.S. decision to revoke the permit was unfair and inequitable,” TC Energy said in its filing, blaming the U.S. for putting Keystone XL on a 13-year “regulatory roller coaster.”

The proposed pipeline, which would have transported up to 900,000 barrels per day of Canadian crude to U.S. refineries, was rejected by then-President Barack Obama after he concluded it would exacerbate climate change. Keystone XL was later revived by President Donald Trump, only to have Biden reject it again, on his first day in office.

While the new U.S.-Mexico-Canada Agreement that replaced Nafta limited the use of so-called investor-state dispute settlement systems, arbitration is still temporarily grandfathered for some legacy investments.

TC Energy suspended construction on Keystone XL and terminated the project after Biden revoked its permit. TC Energy has no intention of reviving Keystone XL regardless of the outcome of the trade case, which is designed to recover the investment it lost pursuing the project under three U.S. presidents, said Richard Prior, the company’s senior vice president for liquids pipelines.

“We’re not doing this for symbolic or political purposes. This is a business decision,” Prior said in an interview. “We had all the permits and requirements in place to start construction on the line, and did so, and we worked with federal and state regulators in both countries for a very long period of time. This is just about recovering that destroyed value of investment.”

TC Energy accuses the U.S. of violating its obligations under Nafta with actions by three administrations. The company said in the filing it agreed to abandoned an earlier Nafta arbitration claim after the Trump administration promised “its third application would be fairly considered by the United States.” With its new filing, TC Energy also is renewing some of those earlier arguments tied to the Obama administration’s initial, 2015 rejection of Keystone XL.

The dispute goes before a three-member arbitration panel, with one likely appointed by TC Energy, a second appointed by the U.S. and a third appointed by agreement of both parties. The tribunal cannot compel a country to change its laws over the matter nor force approval of the pipeline, but it could award damages for lost profits and costs incurred by the company.

Such investor-state dispute settlement claims by corporations against the U.S. are relatively rare, and the U.S. has a good track record in winning them. However, companies have emerged victorious in similar international disputes. Most notably, in March, Germany agreed to pay $2.9 billion to Sweden’s Vattenfall AB and other utilities, as part of a compensation package resolving a decade-long battle over the country’s decision to phase out nuclear power.

Biden’s decision to rescind a presidential permit his first day in office — without another round of government analysis on the long-studied project — gives TC Energy an “extremely strong case” under Nafta language barring arbitrary discrimination, said Gary Hufbauer, a Washington-based senior fellow at the Peterson Institute for International Economics.

“TC has a great legal case going in,” Hufbauer said. “This was well out of the norm of customary government behavior.”

Original Article: https://ca.finance.yahoo.com/news/keystone-pipeline-developers-seek-15-213045577.html

25 thoughts on “Pipeline Developers Want $15B From U.S. for Biden’s Cancellation”
  1. Looks like Keystone just wanted to poison all the wells that USA LEGAL CITIZENS were using………..They wanted to destroy Native American land & wells just to put $$$$ into their pocket and most of the people that were installing that pipeline were Canadian……..Tell Keystone to shove their lawsuit right up their wazoo………

  2. This is no more than absolutely “right and proper” correct for the pipeline companies to get the money back. They put a lot of work and fund into plat and lockup when the government contracts were let. They should go after “punitive damages” as well because that is the reason Dopey Joe cancelled the deals. He should not have been allowed to do it in the first place. Contract Law is sacred in the business world. Governments can’t just play games with other peoples lives and money. FORCE BIDEN TO REVERSE HIS FOOLISH DECISION.

  3. Biden is an inept fool and knows nothing about running America or leadership. The Keystone was properly vetted and approved and the delays were caused by Hillary and Obama. The issues brought up about the environment had all been satisfied and the agencies had approved several times. Biden had no reason to call for revoking their permit and his stupidity has worked against our economy ever since. He should be charged with interfering and removed from office.

  4. Being as China Joe’s the one who’s shut down all things in this country that contributed to our global independence maybe ol’ slow joe ought to be considering re-opening the pipeline work and other “opportunities” we could be enjoying if ol’ slow joe ever breaks away from his global elite, liberal handlers.

    Nah, ol’ slow joe’s nothing more than a blight on our country. He’s doing all he can in his waning power to destroy our Constitutional Republic as we know it before he’s shown the basement door.

    MAGA2024! TRUMP2024!

  5. Trump tried to do a good thing for “WE the PEOPLE” and make us energy independent. Then along comes Biden and takes that away from us, by doing so he is causing more polution in the world. They just can’t getrump out of their heads and it’s been nearly a year! GO TRUMP!!

  6. For all of the liberals and Clemson fans out there, that’s nine zeros—$15 billion is a whopping 15 thousand MILLION dollars,

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