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TransCanada to file 2 legal challenges to Keystone rejectio

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HOUSTON The Canadian company that proposed the Keystone XL oil pipeline has filed a lawsuit over the U.S. government’s rejection of the project and says it plans a second legal challenge.

TransCanada on Wednesday filed a federal lawsuit in Houston alleging President Barack Obama’s decision in November to kill the pipeline exceeded his power under the U.S. Constitution.

The company also announced it will submit a separate petition seeking more than $15 billion in damages, alleging the U.S. breached its obligations under the North American Free Trade Agreement.

The energy industry had argued the pipeline would create thousands of jobs and inject billions into the economy. Environmental activists spent years denouncing the pipeline.

The White House and the State Department both declined to comment on the lawsuit or the NAFTA challenge.

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