CALGARY — Alberta is seeking $1.3 billion in compensation from the U.S. government in the wake of President Joe Biden's cancellation of the Keystone XL pipeline's permit.

The provincial government says it has filed a notice of intent to launch a claim under legacy rules tied to the old North American Free Trade Agreement, or NAFTA.

The proposed Keystone XL pipeline had been the subject of a decade-plus battle that pitted the energy industry against environmentalists.

Biden revoked the permit for Keystone XL shortly after his inauguration last year.

Calgary-based TC Energy, the company behind the proposed pipeline, filed a similar claim in July seeking US$15 billion, after formally cancelling the project and taking a $2.2-billion writedown.

The Alberta government had invested in the project and was left on the hook for $1.3 billion when it was cancelled.

This report by The Canadian Press was first published Feb. 9, 2022.

The Canadian Press