Canadian developer sues the Federal government for $15 billion in damages

The company that wanted to build the Keystone XL pipeline is now seeking $15 billion in damages from the federal government. This comes after the Obama administration’s rejection of the Canada-to-Texas project.

TransCanada Inc. filed a request for arbitration Friday, arguing that the decision was in violation of the North American Free Trade Agreement.

The pipeline would have carried 830,000 barrels of crude oil per day from Hardisty, Alberta in Canada to Steele City, Nebraska, where it would have connected to existing pipelines that run south to Gulf Coast refineries.

A spokesman for TransCanada says the rejection in November was “arbitrary and unjustified.” The company also argued that the administration rejected the project to bolster its environmental credentials.

A State Department spokesman said the agency doesn't comment on pending litigation.