Crisis in Alberta News

Alberta may seek compensation from U.S. after Biden cancels Keystone XL pipeline

U.S. President Joe Biden killed the Keystone XL pipeline and Alberta is considering seeking compensation from the U.S. through an old free-trade rule that still exists. A North American Free Trade Agreement (NAFTA) provision allows compensation claims for lost investments.

Alberta spent C$1.5 billion towards construction of the project.

The United States-Mexico-Canada during the Trump administration replaced NAFTA but the old rule is in place during a phase-out period.

To “retroactively remove regulatory approval on the basis of which an investment was made is, in my view, a slam dunk case of a claim for damages through NAFTA under the investor protection provisions,” said Kenney on Tuesday. “We believe we have a very strong case for damages, and we’ll be continuing to work with TC Energy on that.”

TC Energy’s Keystone XL was to ship more than 800,000 barrels a day of crude from Alberta’s oil sands to U.S. refineries.

After Biden killed the project, TC Energy laid off about 1,000 employees in Canada and the U.S.

TC Energy sought $15 billion in compensation under NAFTA in 2016 after President Barack Obama rejected the project but the case was dropped after President Donald Trump approved the project.

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