President Obama’s refusal to allow TransCanada, the developer of the Keystone oil pipeline, to build that pipeline in the U.S. has caused the company to take matters into its own hands. It has filed a lawsuit against the Obama Administration.
The Keystone Pipeline, a project that Republicans believe would create jobs and be good for the American economy, has been an eyesore for Obama who has repeatedly rejected calls from Republicans to allow the pipeline to be built. The controversy over the pipeline started shortly after Obama was elected president.
In February 2015, Obama vetoed a bill that would have given the green light for the pipeline’s construction. Even Obama supporters like Warren Buffet said Obama was wrong to have vetoed the bill and Buffet intimated that the issue was a personal pet peeve of Obama. With harsh criticism for Obama, Buffet said he was “thumbing his nose” to the Canadians.
TransCanada’s lawsuit seeks to reclaim the billions that the company already spent in planning and costs associated with the pipeline’s planned construction. The company released a statement on Wednesday in reference to the two lawsuits.
TransCanada’s legal actions challenge the foundation of the U.S. administration’s decision to deny a presidential border crossing permit for the project. 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.
TransCanada is seeking $15 billion in losses sustained as a result of Obama’s veto. Also, the company claims that Obama’s veto is a direct violation of an international treaty, the North American Free Trade Agreement, otherwise known as NAFTA.