OTTAWA—A U.S. company is suing the Government of Canada in a case involving Quebec’s controversial moratorium on hydraulic fracturing or fracking.
Lone Pine Resources Inc., which is incorporated in Delaware but headquartered in Calgary, has filed notice that it intends to sue under the Chapter 11 dispute settlement provisions of the North American Free Trade Agreement.
Lone Pine says the Quebec government’s move to cancel a natural gas exploration permit for deposits beneath the St. Lawrence River last year was “arbitrary, capricious and illegal.”
Details of the claim for arbitration are contained in a notice filed on the website of the Department of Foreign Affairs and International Trade.
The company cites Article 1117 under NAFTA in making its claims for the loss of a “valuable right” without “due process, without compensation and with no cognizable public purpose.”
Lone Pine says the suite has been filed against Ottawa because it is responsible for acts by provinces both under NAFTA and international law.