TransCanada's legal action after U.S. rejection of Keystone XL pipeline spurs mixed reaction

Reaction is pouring in Wednesday after TransCanada announced its intention to seek legal action against the U.S. administration following the rejection of the Keystone XL pipeline in November.

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Calgary-based TransCanada says it hopes to recover $15B in potential lost revenue through a North American Free Trade Agreement (NAFTA) challenge if the pipeline does not go ahead.

The company alsofiled a lawsuitin a U.S. Federal Court in Texas, which is not damage-driven but instead seeks to declare U.S. President Barack Obama's decision to reject the project waswithout legal merit.

Energy lawyer

A Calgarylawyer specializing in energy and pipeline regulations says there is merit toTransCanada'sarguments.

"The company would definitely have some ammunition, the manner in which PresidentObamahad dismissed the project was a bit surprising," said Lawrence Smith of Bennett Jones.

"He based it on dirty oil, he indicated that this was not the way they wanted to proceed in the post-Paris accord era. All that on the face of it is discriminatory."

Hudson Institute

A fellow with a Washington-based think-tank says the move byTransCanadamay have been more effective onceObamawas out of office.

"TransCanada, by launching this case, is going to basically stop all dialogue between the two governments on pipelines and projects like this and that's going to continue even after there's someone new in the White House," Chris Sands of the Hudson Institute said.

"The easier thing would have been to wait until there was someone new in the White House and then they could reapply for a presidential permit and depending on the individual, get a quicker result."

350.org

Some environmental groups, landowners and First Nations collectively slammed the legal actions as "the corporate equivalent of a temper tantrum."

BillMcKibbenof 350.org saysTransCanada'sactions reinforce why trade agreements can put profits ahead of people.

"The idea that some trade agreement should force us to overheat the planet's atmosphere is, quite simply, insane,"McKibbensaid.

"But the oil industry is so used to always winning that I fear this kind of tantrum is predictable. Corporate power is truly out of control."

South Dakota landowner

A South Dakota landowner says the actions amount to corporate bullying.

"Why sue if they are still planning on building?" PaulSeamanssaid."TransCanadabullies landowners, they bully the statesand now they bully the federal government."

Indigenous Environmental Network

A Minnesota-based Indigenous rights group says theNAFTAchallenge is an act of desperation.

"TransCanadahas already lost the battle to get this dirty tar sands pipeline built," said DallasGoldtoothof the Indigenous Environmental Network.

"It is merely a desperate measure to have U.S.taxpayers pick up the tab on their failed investment," he added.

Alberta government

The Alberta government says the decision will not affect a strong relationship between the two trading partners.

"NAFTAhas an established formal arbitration process in place to handle this type of dispute," BradHartle, a spokesperson with the province's energy department said in a statement.

"Alberta's trade with the U.S. is critical to our prosperity and we look forward to continuing to collaborate with our U.S. partners to create jobs and grow the economy on both sides of the border."

But the2016 U.S. presidential electionwill play a big partinpipeline's future.All Republican contenders have declared their support for it, while the two leading DemocratsHillary Clinton and Bernie Sandersoppose it.