The builder of the Keystone XL oil pipeline company is suing the Obama administration in federal court over its refusal to approve the project.
TransCanada, which proposed the pipeline project to connect Canada's oil sands in Alberta with U.S. refiners on the Gulf Coast, on Wednesday filed a lawsuit in U.S. Federal Court in Houston, "asserting that the president's decision to deny construction of Keystone XL exceeded his power under the U.S. Constitution," according to the company.
The administration squashed the project after a record seven years of review, saying the project would increase greenhouse gas emissions and worsen climate change.
"TransCanada's legal actions challenge the foundation of the U.S. administration's decision to deny a presidential border crossing permit for the project," the company says. "In its decision, the U.S. State Department acknowledged the denial was not based on the merits of the project. Rather, it was a symbolic gesture based on speculation about the perceptions of the international community regarding the administration's leadership on climate change and the president's assertion of unprecedented, independent powers."
The company says as a result of the U.S. permit denial, it is reviewing the total sunk cost in the project at $3.1 billion. It is also making a separate claim under the North American Free Trade Agreement to recoup $15 billion in "costs and damages that it has suffered as a result of the U.S. administration's breach of its ... obligations" under the agreement.