Keystone XL was set to become one of the largest pipelines of its kind in North America. As an extension of the existing Keystone pipeline network, owned and operated by the Canadian firm TC Energy, the project was extremely controversial due to concerns about potential leaks along the pipeline route from Alberta to Nebraska as well as significant climate impacts.
In 2021, the United States government revoked a key permit needed by TC Energy to complete the project. In response, the company filed a US$15 billion out-of-court claim against the U.S. government.
The claim was thrown out by a panel of three arbitrators in July 2024 based on a technicality. Nevertheless, the ruling in TC Energy v. United States underscores the importance of protecting vital climate policy initiatives against financial and legal liability.
