Exxon, Murphy Oil sue Canada
The Associated Press reports that ExxonMobil and Murphy Oil plan to sue Canada for breaching the North American Free Trade Agreement by permitting Newfoundland to require them to spend millions of dollars on research in the province, said the U.S. oil giants. The two companies plan to sue the federal government, alleging it violated a previous NAFTA agreement when a provincial-federal agency adopted a new guideline on research and development in November 2004. The complaints stem from the Terra Nova and Hibernia offshore oil projects, in which both U.S. oil companies own stakes. In notices of intent filed last month, ExxonMobil and Murphy Oil said the new regulation would cost them 40 million Canadian dollars ($40.08 million) and 10 million Canadian dollars ($10.02 million), respectively, even if there is no need for such investment.