Big business does write offs but that might not be an option for this so TC Energy just wants its losses offset some. The Keystone pipeline had gone through three Presidential administrations and 13 years. They aren’t going to try again. Biden didn’t even take a second look at the pipeline. Trump did it, we have to get rid of it. Period. TC Energy jumped through a regulatory nightmare. They’ll put their money elsewhere.
It would have provided tons of jobs and less expensive fuel but the US political landscape is too volatile. They’re looking to reclaim something for their headaches.
Those who developed the Keystone XL pipeline are looking for $15 billion in damages from the Biden administration for pulling the rug out from underneath them. The Canadian based company will see if it can put its case before an international arbitration panel under NAFTA.
Construction had already begun, the project should work beautifully, but not with Democrats in office. Both Obama and Biden squashed it. TC Energy said in it’s filing, “The U.S. decision to revoke the permit was unfair and inequitable.”
Under the NAFTA agreement, disputes are at least temporarily grandfathered in. Richard Prior, the company’s senior vice president, said the decision is all business, nothing political here. “We’re not doing this for symbolic or political purposes. This is a business decision. We had all the permits and requirements in place to start construction on the line, and did so, and we worked with federal and state regulators in both countries for a very long period of time. This is just about recovering that destroyed value of investment.”
Keystone would have flourished
Under Trump but not if Democrats hold that power. Obama rejected it in 2015. This arbitration panel would consist of three individuals. One is appointed by TC Energy, another by the US and a third by agreement of both parties. This panel can’t overturn a country’s decision but it can possibly award damages.
It’s an investor vs state claim. They’re relatively rare and commonly the state wins but there have been a couple investor wins. Recently, Germany was willing to pay Sweden $2.9 billion over Vattenfall AB. The country decided to phase out nuclear power. Gary Hufbauer, a senior fellow at the Peterson Institute for International Economics, said their case is strong since Biden did what he did. “TC has a great legal case going in. This was well out of the norm of customary government behavior.”