U.S. oil tycoon takes Ontario to court
T. Boone Pickens seeks $700 million in damages for failed wind farm bids
T. Boone Pickens made billions drilling for oil and gas and squaring off in bare-knuckled corporate takeover bouts. Now the 87-year-old tycoon is embroiled in what may be the last big battle of his career. Only this one is aimed thousands of kilometres north of his Texas home. And it is over wind power.
It is an unusual fight for the former wildcatter. Pickens is using his rights under the North American Free Trade Agreement to bring claims against the province of Ontario. And aFlorida company that has provoked his ire is one that is usually on the same side as Pickens when it comes to regulation and politics — in particular, in helping Jeb Bush get elected president.
Like other investors who have challenged governments, Pickens has taken his dispute to an international court.
He is seeking $700 million in damages for future losses related to bids that his wind power company, Mesa Power, lost in wind power auctions in Ontario.
Pickens and Mesa Power contend that the Florida company, NextEra, was granted exclusive access through private meetings with important government officials that ultimately tilted the bidding in its favour.
Ontario granted NextEra $3.8 billion in energy contracts. Mesa Power contends that $18,600 in donations that NextEra made to the provincial Liberal Party before elections in 2011 had undue influence on the auction. NextEra did not respond to a request for comment.
Pickens says his long-running dispute is a matter of principle.
“It makes no difference whether the amount is $7 billion or $700 million,” he said. “It’s about fighting for fair and equitable treatment.”
But Mesa Power’s loss in Ontario was also personal — the projects would have been the cornerstone of a wind energy business that he extolled back home in the United States and that ultimately failed.
Ontario says the claims are without merit. The international tribunal is expected to rule as soon as this month.