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TransCanada Sues Obama Administration For Blocking Keystone XL Construction

Russ Girling, the company president and chief executive officer, was more biting in November in his criticism of the decision when he accused the Obama administration of appearing “to have said yes to more oil imports from Iran and Venezuela, over oil from Canada, the United States’ strongest ally and trading partner [and] a country with rule of law and values consistent with the U.S”.

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Furthermore, in the federal court filing, TransCanada asserts the Administration’s action was contrary to Congress’ power under the U.S. Constitution to regulate interstate and worldwide commerce. Both the U.S. Senate and the House of Representatives passed a bill earlier in 2015 to approve the project’s construction.

The Calgary-based TransCanada Corporation says it intends to launch a claim under a section of the North American Free Trade Agreement, as well as sue on the grounds the president “exceeded” his power under the constitution.

The US State Department declined to comment.

“We have just seen the announcement”.

The lawsuit names Secretary of State John Kerry, Attorney General Loretta Lynch, Homeland Security Secretary Jeh Johnson and Interior Department Secretary Sally Jewell. Obama administration officials have said there are adequate protections in the TPP to prevent the arbitration process from being exploited, and the president has described the agreement as “the most pro-labor, pro-environment, progressive deal in history”.

“So if Congress is serious about wanting to create jobs, this was not the way to do it”, he continued.

In denying the permit, Obama cited the urgency of climate change but said the pipeline would have been neither an economic silver bullet nor an environmental disaster.

The project became a political lightning rod, with opponents saying it would exacerbate global warming by encouraging development of Canadian oil sands and endanger groundwater and sensitive landscapes like the Nebraska Sandhills.

“We’re aware of recent developments with this file and TransCanada”, he said. “Today, we’re continuing to lead by example”.

A ham-handed lobbying campaign by Canada’s then-Prime Minister Stephen Harper did not help the pipeline’s cause. But Wednesday’s news ensures that the project will be at the forefront during Mr. Obama’s final 12 months in office.

TransCanada Corp. on Wednesday said it was pursuing dual legal actions against the Obama administration in response to its refusal to issue a border-crossing permit for the company’s Keystone XL pipeline project.

The company said it can still reapply for a presidential permit while its legal challenges proceed and it is considering that option.

“Keystone XL is dead and nothing about this legal maneuvering changes that”.

Alongside damages, TransCanada said it is seeking a ruling which would declare the pipeline’s rejection as invalid. “In TransCanada’s world, if it can not profit off of harming our health, climate, and environment, then it will demand our tax dollars”.

However, the supporters of the Keystone pipeline are praising the company’s decision for an appeal.

The Keystone XL pipeline was meant to connect to this pumping station in Steele City, Neb.

Wednesday’s action by TransCanada also brings NAFTA and its Chapter 11 provisions into the spotlight. They also accused the company of exploiting provisions in NAFTA.

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With more than 65 years’ experience, TransCanada is a leader in the responsible development and reliable operation of North American energy infrastructure including natural gas and liquids pipelines, power generation and gas storage facilities.

Thousands of activists protested against the Keystone XL pipeline