Canada firm prepares NAFTA lawsuit against US believing Obama is ready to ax Keystone XL

posted at 5:21 pm on August 11, 2015 by Jazz Shaw

Who’s ready for a good old fashioned diplomatic breakdown with our international neighbors? No.. for once I’m not talking about Mexico. There may be a lawsuit coming our way shortly from our neighbors to the north. TransCanada Corporation officials in Canada are pretty sure that years of good faith bargaining and effort aimed at completing the Keystone XL pipeline may be about to go down the drain, and they don’t plan to go quietly into that good night. (CBC News)

The Canadian company involved in the controversy-plagued Keystone XL project has begun planning its response as indications mount the proposed oil pipeline will be rejected by U.S. President Barack Obama…

[P]eople close to the project say the company has become all but convinced a rejection is imminent based on signals the White House is sending publicly and privately — and it’s now considering the next move.

One possible response is a challenge under the North American Free Trade Agreement to recoup damages from the U.S. government. Another is immediately re-filing a permit application with the U.S. State Department before the 2016 presidential election.

Public statements from the company are still trying to take a cheerful tone, saying they “hope” that the President will do the right thing, but they’ve obviously gotten the inside track from beltway folks in the know and are taking the same position as most of us in the lower 48. Sooner or later Barack Obama is going to finally issue his decision (via the State Department) and he’s going to shoot down the pipeline. So what can TransCanada do at that point? As the article suggests, they can file a lawsuit claiming that the United States is acting in bad faith under NAFTA, but that’s a rather long shot play. There has never been a successful NAFTA lawsuit brought against the United States. Conversely, Canada has been hit with roughly 70% of all NAFTA lawsuits ever started and they have settled a fair percentage of them out of court. (Usually with environmental groups.)

Their second option of refiling the application yet again is certainly possible, but where will that get them? All it’s going to do is restart the battle and turn it into even more of a campaign issue next year. Here at home that might be a plus because it could finally force Hillary Clinton to get off the bench and say what she would do, but unless a Republican wins the White House I’m not all that optimistic that things would end any differently next time around. And in the meantime, more years would slip by with all those jobs and development funds sitting on the shelf.

On a related note, the Obama administration is really racking up quite the record of launching international kerfuffles this month which wrap up energy companies and foreign nations. New sanctions against Russia have suddenly jeopardized Royal Dutch Shell in their efforts to close a large deal with a Russian energy firm. Of course in that case it’s hard to have too much sympathy for Shell. Given our relationship with Russia these past few years that was going to be problematic at best and they hopefully have an escape hatch on that deal. But still, it’s yet another example of how politics can poison the energy industry because it’s truly a global beast in nature.


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Comments

This is a good place to put a link to Mark Steyn’s new book on Michael Mann’s Hockey Stick fraud.

http://www.wattsupwiththat.com/

Mikie Mouse Mann is out of his league big time.

ps
18 years 7 months no temp. rise.

APACHEWHOKNOWS on August 11, 2015 at 5:24 PM

Don’t worry. Kerry/Corker will get right on the case.

arnold ziffel on August 11, 2015 at 5:25 PM

My god, I never thought I’d see the day that I would be supporting Canada over America.

Megyn Kellys Lipstick on August 11, 2015 at 5:29 PM

So, did I miss it, or was there never a thread about the EPA massively polluting a river with heavy metals?

Count to 10 on August 11, 2015 at 5:29 PM

Berkshire-Hathaway is down this week…now only $214,000 a share.

Keystone will cut into those $billion rail car leases something awful.

Priorities.

coldwarrior on August 11, 2015 at 5:31 PM

Just one more “accomplishment” in his to do list for fundamentally transforming this country.

leftamark on August 11, 2015 at 5:32 PM

So, did I miss it, or was there never a thread about the EPA massively polluting a river with heavy metals?

Count to 10 on August 11, 2015 at 5:29 PM

Hot Gas covered that at least 2 days ago.

Del Dolemonte on August 11, 2015 at 5:32 PM

If Obama can choose to ignore federal immigration laws and federal drug laws, the states should choose to ignore the EPA and Obama. Just start building the damn thing.

Megyn Kellys Lipstick on August 11, 2015 at 5:32 PM

BTW…Buffet owns Heinz.

Hmmm….

coldwarrior on August 11, 2015 at 5:33 PM

Obama continuous to end up in court I mean seriously getting sued by Canada. It’s boardering on darkly comic god much of his agenda is tied up in the courts at this momment.

sorrowen on August 11, 2015 at 5:35 PM

Canada Held Hostage by Vacationary/Golf Playing Prezy!!!!

canopfor on August 11, 2015 at 5:38 PM

The actions of a tyrant, punishing the Canucks while sleeping with the Ayatollahs.

antipc on August 11, 2015 at 5:40 PM

Wish Obama would cross the border, to seize his
birth certificate/passport, and hold him hostage
till he signs the deal!

Nightmarish problem,…GaffeBiden would be in charge!

Maybes we in Canuckland, could rendition Hopey!!!

canopfor on August 11, 2015 at 5:41 PM

Hot Gas covered that at least 2 days ago.

Del Dolemonte on August 11, 2015 at 5:32 PM

Guess I missed it, then. Though it seems to be an ongoing story.

Count to 10 on August 11, 2015 at 5:43 PM

There may be a lawsuit coming our way shortly from our neighbors to the north. TransCanada Corporation officials in Canada are pretty sure that years of good faith bargaining and effort aimed at completing the Keystone XL pipeline may be about to go down the drain,
=============

This Bleeding of Oil Jobs has gots to stop!!

canopfor on August 11, 2015 at 5:43 PM

The amount of money Canada has lost by being teased along by the Obama Administration for so many years should certainly be recoverable in court.

I don’t think there is any judge who could rationally look at the US’s actions and not conclude our government was acting in bad faith to prevent Canada from using its own resources.

The amount of lying necessary to convince our closest ally and trading partner to NOT start shipping their crude to China must have been prodigious even by Democrat standards.

Dolce Far Niente on August 11, 2015 at 5:45 PM

Don’t worry. Kerry/Corker will get right on the case.

arnold ziffel on August 11, 2015 at 5:25 PM

Yeah, Bob Porker will craft a bill that requires 3/4ths of Congress to override Obama’s decision on Keystone XL, not the 2/3rd required by the Constitution.

He’s smart like that.

ConstantineXI on August 11, 2015 at 5:45 PM

So, did I miss it, or was there never a thread about the EPA massively polluting a river with heavy metals?

Count to 10 on August 11, 2015 at 5:29 PM

http://hotair.com/archives/2015/08/07/millions-of-gallons-of-toxic-waste-water-spilled-into-river-by-the-epa/

agmartin on August 11, 2015 at 5:46 PM

If Obama can choose to ignore federal immigration laws and federal drug laws, the states should choose to ignore the EPA and Obama. Just start building the damn thing.
Megyn Kellys Lipstick on August 11, 2015 at 5:32 PM
I’m just getting amused at the amount of lawsuits he had piling up plus the EPA will be sued more.

sorrowen on August 11, 2015 at 5:47 PM

There may be a lawsuit coming our way shortly from our neighbors to the north. TransCanada Corporation officials in Canada are pretty sure that years of good faith bargaining and effort aimed at completing the Keystone XL pipeline may be about to go down the drain,
=============

Ya, under the darkness of night,….I can see Canadian Beavers
on a WH tree eating retaliation!!

This will be a go, as soon as we arrange mini-parachutes,
and a pilot, for a C-130, to shove them, out the back door!!
(sarc)

canopfor on August 11, 2015 at 5:48 PM

Only an idiot would have thought that Obama was going to approve Keystone. He hates fossil fuels.

alanstern on August 11, 2015 at 5:50 PM

Only an idiot would have thought that Obama was going to approve Keystone. He hates fossil fuels.

alanstern on August 11, 2015 at 5:50 PM

Obama wants the American standard of living reduced. Not his, Americas. If the unicorn fart energy he supports really existed he’d oppose it for that very reason.

And I guarantee you that the Obamas will be the only blacks in whatever neighborhood they end up living in post Presidency.

ConstantineXI on August 11, 2015 at 5:52 PM

obama kills everything which is good.

Schadenfreude on August 11, 2015 at 5:56 PM

Big business looking for cheap labor and profits again.
They will probably use illegals to built the pipeline.

weedisgood on August 11, 2015 at 5:56 PM

ConstantineXI on August 11, 2015 at 5:52 PM I’ve always found his income inequality speeches annoying he is rich due to his fictional books. Yes I just called them fictional…I want to be rich just to give him the middle finger :)

sorrowen on August 11, 2015 at 5:57 PM

onstantineXI on August 11, 2015 at 5:52 PM I’ve always found his income inequality speeches annoying he is rich due to his fictional books. Yes I just called them fictional…I want to be rich just to give him the middle finger :)

sorrowen on August 11, 2015 at 5:57 PM

Doesn’t every “man of the people” average American have two (ghostwritten) autobiographies published before age 50?

ConstantineXI on August 11, 2015 at 6:00 PM

obama kills everything which is good.

Schadenfreude on August 11, 2015 at 5:56 PM

…or delegates it to Planned Parenthood.

RBMN on August 11, 2015 at 6:01 PM

Big business looking for cheap labor and profits again.
They will probably use illegals to built the pipeline.

Cheech Wizard on August 11, 2015 at 5:56 PM

Like you used illegals to teach you how to write simple English?

Del Dolemonte on August 11, 2015 at 6:01 PM

I’m about to head downstairs to hit the hotel sports bar for dinner and some adult beverages. Anyone care to predict how many Trump posts that will show up by the time I get back?

Put me down for 5. It’s my lucky number (Johnny Bench’s number)

ConstantineXI on August 11, 2015 at 6:02 PM

Keystone is built out except for the places where Earth First/Greenpeace lawyers and the EPA have it blocked like two places.

From Cushing Ok. to the refiners in Houston it has oil flowing 24/7 now.

APACHEWHOKNOWS on August 11, 2015 at 6:10 PM

This is a good place to put a link to Mark Steyn’s new book on Michael Mann’s Hockey Stick fraud.

http://www.wattsupwiththat.com/

Mikie Mouse Mann is out of his league big time.

ps
18 years 7 months no temp. rise.

APACHEWHOKNOWS on August 11, 2015 at 5:24 PM

correct link

http://wattsupwiththat.com/2015/08/11/a-review-of-steyns-scathing-new-book-about-michael-mann-a-disgrace-to-the-profession/

dmacleo on August 11, 2015 at 6:10 PM

Obama is going to Axe the pipeline.

Why is Canada going to sue us for believing that?

kcewa on August 11, 2015 at 6:14 PM

Cheech Wizard,

We in our little vietnam recon group have buddies in the Tulsa Ok. Code Welders Union, and yes the sub contractors on the pipe line used lots of illegals to build out the pipe line. In fact a few of the “scab” non union subs had illegals who had fake ID’s, fake SS’#’s and even a few had fake union work time as code welders so that the welds would pass inspections.

All of this photo’s, interviews, and reported to U.S. Senators and Congress critters.

crikets from the two party evil money cult…

There were stand off’s at some of the large pump stations between the scab illegals and real union code welders and the Mexican coyotes who were taking care of getting the illegals weekly checks for the border jumping.

The media we called would not go near the places.

APACHEWHOKNOWS on August 11, 2015 at 6:15 PM

Big business looking for cheap labor and profits again.
They will probably use illegals to built the pipeline.

weedisgood on August 11, 2015 at 5:56 PM

Did you know they used illegals to build the Alaskan pipeline.

RickB on August 11, 2015 at 6:16 PM

Obama is going to Axe the pipeline.

kcewa on August 11, 2015 at 6:14 PM

What’s he gonna axe it?

coldwarrior on August 11, 2015 at 6:17 PM

Like you used illegals to teach you how to write simple English?

Del Dolemonte on August 11, 2015 at 6:01 PM

Like on South Park where the kids found illegals will do anything. They paid one to write an “essay” and got “ese”.

arnold ziffel on August 11, 2015 at 6:17 PM

ps

Code Welders Union part of the Teamsters.

The headqts. of the Code Welders Union, Chicago.

get it?

APACHEWHOKNOWS on August 11, 2015 at 6:31 PM

Buy yer railroad stock. Now.

vnvet on August 11, 2015 at 7:17 PM

Where are all the Trump bashers who were talking about his eeevvviiillll use of eminent domain? Why aren’t they talking about a FOREIGN company using eminent domain to take American property? And trying to use a job killing treaty to do so?

For the record, I am an agnostic on Keystone. I just find conservative inconsistency on this amusing.

avgjo on August 11, 2015 at 9:27 PM

The NAFTA suit is unlikely to work. XL is just one of many pipelines and the feds seem to have fast tracked other projects to upgrade existing pipelines between the US and Canada (there are around 65). There is plenty of product crossing the border one way or another so I think they will have a hard time proving that the XL cancellation violates trade covenants.

lexhamfox on August 11, 2015 at 10:07 PM

Go ahead, Canada. Sue the maple syrup out of him. Though you’ll have to get in line.

Occams Stubble on August 11, 2015 at 10:11 PM

Never thought I’d be rooting for CanuckiSocialstan over my own nation in a lawsuit, but we live in strange times. Thought I highly doubt it’s going to get anywhere while Obama is in office.

LawfulGood on August 12, 2015 at 2:23 AM

Maybe something good will come out of NAFTA after all. It would be wondrous to see the progressive globalists hung out to dry by their own program.

The reason for the refilling is obvious. It has nothing to do with getting the pipeline approved immediately. It is all about making sure the issue is part of the 2016 election.

bartbeast on August 12, 2015 at 6:48 PM

Ya, under the darkness of night,….I can see Canadian Beavers on a WH tree eating retaliation!!

This will be a go, as soon as we arrange mini-parachutes,
and a pilot, for a C-130, to shove them, out the back door!!

If you want the beavers delivered, hire the penguins.
https://www.youtube.com/watch?v=9YEhB_Be3p0

bartbeast on August 12, 2015 at 6:57 PM