TC Energy Corporation (NYSE:TRP) shares are trading slightly lower premarket today. The company expressed disappointment after the Tribunal overseeing its claim for over $15 billion in damages has determined in a jurisdictional ruling that the claim cannot proceed.
The claims resulted from the January 20, 2021 revocation of the Presidential Permit for the Keystone XL Project.
The Tribunal's decision, based on Annex 14-C of the USMCA replacing NAFTA on July 1, 2020, found that while investments under NAFTA were protected until July 1, 2023, this protection applies only to breaches occurring before July 1, 2020.
Thus, the Tribunal concluded it lacked jurisdiction to determine if revoking the Presidential Permit violated NAFTA's obligations outlined in Section A of Chapter 11.
Patrick Keys, Executive Vice-President and General Counsel, TC Energy stated, "We are both disappointed and frustrated with the Tribunal's decision to deny our right to bring a legacy NAFTA claim."
"This ruling does not align with our expectations and views of the plain interpretation of the protections NAFTA and the USMCA were designed to offer. TC Energy was treated unfairly and inequitably in the revocation of the Permit, which was driven by political considerations."
TC Energy has not included any potential NAFTA claim recoveries in its financial statements or outlook.
Keystone XL, designed to transport 830,000 barrels per day from Alberta, Canada, to the U.S. Midwest, faced over a decade of environmental and regulatory challenges before its permit was revoked, reported Reuters.
President Joe Biden revoked the pipeline's permit a year after NAFTA ended in July 2020, replaced by the United States-Mexico-Canada Agreement (USMCA).
Also Read: TC Energy Shareholders Approve Spin-Off Of Liquids Pipeline Business: Report
Investors can gain exposure to the stock via VanEck Energy Income ETF (NYSE:EINC) and IPath Select MLP ETN (BATS:ATMP).
Price Action: TRP shares are down 0.18% at $39.87 premarket at the last check Wednesday.
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