TransCanada has formally filed a $15 billion suit against the US government for blocking its controversial project for an oil pipeline linking Canada with the Gulf of Mexico, legal documents show. The company first announced its intention to sue in January, but then sought negotiations toward "an amicable settlement of the dispute" surrounding the Keystone XL pipeline, according to legal documents posted on its website.
Unable to settle, the company formally filed suit late Friday, asserting that denial of a permit to complete the pipeline was "unjustified" under the North American Free Trade Agreement (NAFTA), and that the decision also exceeded US President Barack Obama's constitutional powers.
The suit is based on Chapter 11 of NAFTA - the 1994 trade pact between the United States, Canada and Mexico - which aims to protect foreign investors from potential losses.
The Calgary-based company is seeking $15 billion for losses it says it suffered because of the pipeline's rejection.
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