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Copyright (c) Foundation for International Law and Management, Inc.
Brigham Young University International Law & Management Review

ARTICLE: International Local Government Law: The Effect of NAFTA Chapter 11 on Local Land Use Planning

Winter, 2007

Brigham Young University International Law & Management Review

4 BYU Int'l L. & Mgmt. Rev. 53

Author

Brynn Olsen *

Excerpt

I. INTRODUCTION

By 2005, investors had claimed twenty-eight billion dollars against the United States under the government land expropriation rules provided by Chapter 11 of the North American Free Trade Agreement (NAFTA). 1 Still pending against the United States is a suit brought by Glamis Gold, a Canadian corporation, for fifty million dollars. 2 Glamis alleges that a California mining regulation amounts to an expropriatory regulation under NAFTA Chapter 11, 3 which provides protection for foreign investors by promising compensation against legislation that constitutes a direct expropriation of an investor property interest or that amounts to a "measure tantamount to expropriation" of an investor's property interest. 4

Through its wholly owned U.S. subsidiaries, Glamis Gold acquired mining interests in Imperial County, California, near sacred ancestral sites of the Quechan Indians. 5 Glamis intended to use its property interest to operate a large open pit gold mine. 6 Upon review in 1997, the Bureau of Land Management, a federal agency within the U.S. Department of Interior, approved Glamis' proposed project. 7 However, in 2001 the Interior Department formally denied Glamis' project on the basis that it would cause "serious and irreparable" degradation of an area that is sacred and historic to the Quechan Indians. 8 In that same year, President Bush came to office and appointed new officials to the Interior Department, who soon after rescinded the prior Department's denial of Glamis' project. 9 California resisted the federal government's recommendation to grant permission for Glamis' project by adopting Senate ...
 
 
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