Step 1One

This international dispute involves a complicated conflict between a private Canadian pipeline company, Pennzoil-Canada, Inc., environmental advocacy organizations, Indigenous Nations (in both Canada and U.S.), Canada, Pennsylvania and the U.S. governments. The dispute concerns Pennzoil's Line A pipeline which runs through Canada but passes along the bottom of a portion of Lake Erie located on Pennsylvania state property. Pennsylvania, with the support of environmental advocacy organizations and American Indigenous Nations fears the pipeline poses a catastrophic environmental risk if it ruptures under water and that any spill from it would threaten the portions of Lake Erie located in Pennsylvania as well as the entire Great Lakes. Pennzoil-Canada has said that this section of the 68-year-old pipeline has never leaked and that it is taking steps to protect the lakes after previously negotiating a plan with the former Pennsylvania Governor (Republican). In May 2021, however, the newly elected Pennsylvania Governor (a Democrat) threatened to seize profits from Pennzoil-Canada if the company continued to operate a pipeline through the Pennsylvania land located in Lake Erie after a August 1, 2023 deadline to shut the pipeline. In a letter sent to Pennzoil-Canada, the Pennsylvania Governor and the Director of the State's Natural Resources Department, reminded the company the State had revoked a permit that allowed the Line A pipeline to run along the bottom of the Lake Erie on state property owned and controlled by Pennsylvania. Pennzoil-Canada has refused arguing that Pennsylvania doesn't have the authority to close the line, which transports oil and natural gas liquids from Superior, Wisconsin, through Canada to refineries located in Ohio and Pennsylvania. "Our responsibility is to the people of the upper US Midwest and the Great Lakes region," a Pennzoil- Canada spokesman said. "Pennzoil - Canada will continue to deliver petroleum products via Line A - a safe, reliable and affordable energy to fuel to the region's economies." The potential closure of the 645-mile pipeline has become a major issue for some Midwestern States and for Canada. The State of Ohio supports Pennzoil-Canada's position in the case, and, on Tuesday, Canada weighed in with support for the Company. Officials in Ottawa say closing the pipeline would cut off almost half the supply used to make gasoline, jet fuel and home heating oil for residents in central Canada. The closure could lead to higher fuel costs and thousands of job losses in refineries, officials said. Canada said there should be no shutdown until the U.S. and Canadian officials work to resolve the matter, as allowed under the terms of a 1977 treaty between the North American Countries. That Treaty prohibits authorities in either Country from blocking pipelines that ship oil and gas across the border unless there is an emergency. Canada's lawyers said the Treaty came about because of U.S. efforts to transport oil-and-gas products from Alaska through Canada to the Lower 48 U.S. States. "Canada is seeking a mutually agreeable solution that also respects environmental and safety concerns. Although Canadian officials, including its Ambassador to the U.S., have reached out to counterparts in Washington, the White House has so far been reluctant to intervene.

STEP Two

1) What are the ultimate legal issues or disputes between the parties stated in two sentences?2) If Pennzoil-Canada files a lawsuit against Pennsylvania, where will it most likely file the lawsuit, why at that location, and what are its best legal theories of recovery. 3) If Pennsylvania files a lawsuit against Pennzoil-Canada, where will it most likely file the lawsuit, why at that location, and what are its best legal theories of recovery.Be certain you discuss each question thoroughly to maximize your points.