On Monday, November 22, 2021, TC Energy submitted a formal Request for Arbitration of a legacy North American Free Trade Agreement (NAFTA) claim under the United States-Mexico-Canada Agreement. TC Energy seeks economic damages resulting from the revocation of the Keystone XL Project’s Presidential Permit.
In July, TC Energy began the process by filing a Notice of Intent to initiate a NAFTA claim. The formal Request for Arbitration is the next step in the process under the investor-state dispute settlement provisions of NAFTA Chapter 11, which allow companies to seek compensation for lost investment.
President Biden Revoked Permit
President Biden revoked the project’s Presidential Permit on January 21, 2021. On June 9, 2021, “after a comprehensive review of its options, and in consultation with its partner, the Government of Alberta,” TC Energy terminated the Project. (See Alert TC Energy and Alberta Announce Termination of Keystone XL Pipeline)
Responsibility to Shareholders
In its November 22 announcement, TC Energy said, “As a public company, TC Energy has a responsibility to our shareholders to seek recovery of the losses incurred due to the permit revocation, which resulted in the termination of the project.” This announcement also indicated TC Energy will follow the NAFTA process without further public comment.
To see TC Energy’s announcement https://www.tcenergy.com/newsroom/statements/tc-energy-submits-a-formal-request-for-arbitration-under-nafta-chapter-11/