TransCanada announced their decision to file a lawsuit this week against the Obama Administration for the decision to deny the Keystone XL permit.
The company, who is behind the Keystone XL pipeline, claims that the decision was “arbitrary and unjustified.” and is seeking $15 billion is costs and damages.
The lawsuit is being filed under the North American Free Trade Agreement (NAFTA) that allows for companies to sue the government in the case of regulation putting their investments at risk. Any ruling will not reverse the decision regarding the permit, but can force the government to pay up.
The company states:
“TransCanada has been unjustly deprived of the value of its multibillion-dollar investment by the U.S. administration’s action.”
“TransCanada asserts the U.S. administration’s decision to deny a presidential permit for the Keystone XL pipeline was arbitrary and unjustified.”
TransCanada is especially attacking President Obama, claiming that he exceeded his power in attempts to show that he was taking real action on climate change:
“Environmental activists … turned opposition to the Keystone XL Pipeline into a litmus test for politicians—including U.S. President Barack Obama — to prove their environmental credentials. The activists’ strategy succeeded.”
The Sierra Club and 350.org also issues a statement, saying that the company was “throwing the corporate equivalent of a temper tantrum.”
According to Lawrence Herman, a Toronto-based lawyer, the case could go on for several years, and that “they have a pretty strong case.”