TC Energy seeks to recoup costs from U.S. for cancelled Keystone XL pipeline expansion

Pipes intended for construction of the Keystone XL pipeline are shown in Gascoyne, N.D. on Wednesday April 22, 2015. Alex Panetta, The Canadian Press

Pipeline giant TC Energy is formally seeking compensation from the U.S. government for the cancellation of the cross-border Keystone XL expansion project.

The Calgary-based company has officially filed a request for arbitration in its bid for “economic damages” resulting from President Joe Biden’s decision to cancel the project.

Cancelling the presidential permit issued by predecessor Donald Trump was one of Biden’s first decisions when he took office in January.

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The decision effectively marked the end of a 13-year, on-again, off-again dispute that bedevilled three American presidents and two Canadian prime ministers.

In the process, Keystone XL became an enduring symbol for environmental activists determined to prevent what they considered a dangerous and damaging expansion of Alberta’s oilsands.

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Click to play video: 'What happens to Alberta’s $1.3B investment into Keystone XL?'
What happens to Alberta’s $1.3B investment into Keystone XL?

The company officially abandoned all hope for the expansion in June, and shortly afterward filed notice of its intent to seek compensation under the now-defunct North American Free Trade Agreement.

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Its replacement, the U.S.-Canada-Mexico Agreement, allows companies to file legacy claims for lost investment under the terms of the previous deal.

“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,” the company said in a statement.

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Read more: TC Energy files legacy NAFTA claim; seeks $15B in damages after Keystone XL cancellation

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Officials at the U.S. State Department and the office of U.S. Trade Representative Katherine Tai did not immediately respond to media requests on Tuesday.

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