Friday 8 January 2016

Keystone XL sues Obama for pipeline rejection

Keystone XL sues Obama for pipeline rejection

The developer of the Keystone XL pipeline has announced two lawsuits against the US Government's decision to reject the project.

The 1,179-mile oil pipeline would have carried 800,000 barrels of petroleum a day from Canada to the ports in the Gulf of Mexico and into the world market.

The country's State Department denied the project in November explaining the pipeline wouldn’t lower gas prices for consumers and shipping “dirtier crude oil” into the country wouldn’t increase energy security.

Apart from the Constitutional litigation against the government, TransCanada stated it has taken legal action under the North American Free Trade Agreement (NAFTA).

The company claims President Barack Obama has “overstepped his constitutional authority in denying the permit".

TransCanada is also seeking to recover more than $15 billion (£10.2bn) it claims to have spent in trying to win approval for the pipeline.

The company stated: "TransCanada followed every Federal and State process over a protracted seven-year review period and Keystone XL passed every economic, environmental and geopolitical test. The US Administration’s decision was arbitrary and unjustified."

The government insists its decision "is entirely consistent with all of our international obligations, including our obligations under NAFTA".

Press Secretary Josh Earnest said: "The State Department decided that the Keystone XL Pipeline would not be in the interest of the US and the President agreed that building the Keystone Pipeline would not serve the national interests of the US. That’s why we continue to be confident that the administration acted lawfully."

Written by

Bruna Pinhoni

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