Alberta mulls legal action over Keystone XL pipeline, but will likely need TC Energy’s backing to succeed


Alberta Premier Jason Kenney says his government is working on a legal strategy to recover damages from the failed Keystone XL pipeline, including a possible lawsuit under the North American free-trade agreement that could take place as early as next month. is.

The Alberta government, which last year invested in the project with Calgary-based pipeline builder TC Energy Corp – when Donald Trump was still in the White House – estimates the province’s losses to be around $1.3 billion. The legal challenge would require the province to support TC Energy, but the company has yet to say what it plans to do.

Mr Kenny said on Thursday that US President Joe Biden gave neither defensive reasons for rejecting the pipeline project nor gave supporters the opportunity to make submissions, which the premier argues violates the basic principles of administrative fairness and law. is infringement.

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He suggested that a legal challenge under Chapter 11 of NAFTA, which remains in effect, could come by July.

“We will defend our interests. We have always been clear about it. It has always been part of our Plan B or contingency,” he told reporters.

While NAFTA was replaced by the United States-Mexico-Canada Agreement, its provisions allowing investors to sue the US, Canadian or Mexican governments for compensation will remain in effect until July 2023.

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