TransCanada will challenge President Barack Obama’s denial of its permit to build the Keystone XL oil pipeline in federal court.
TransCanada has sent out a news release saying it has filed a Chapter 11 challenge under the North American Free Trade Agreement in which it asserts the Obama Administration decision to deny the permit was arbitrary and unjustified.
The company has also filed a $15 billion lawsuit alleging President Obama exceeded his constitutional powers in denying the permit and intruded on the power of Congress to regulate interstate and international commerce.
TransCanada claims the administration has admitted the president’s decision was not based on the merits of the pipeline, but was taken to demonstrate the leadership of the United States on climate change. It claims the State Department review of the oil pipeline concluded it would not have a significant impact on climate change. The company further claims the president’s action is unprecedented.
The news release states TransCanada had every reason to expect its application would be granted, because it met the same criteria met by the existing Keystone pipeline, which operates in the United States, including through Nebraska.
The lawsuit has been filed in federal court. It claims the denial is without legal merit and that no further presidential action is necessary before construction of Keystone XL can begin. TransCanada claims it has been unjustly deprived of the value of its multi-billion dollar investment by the president’s decision.