The U.S. Court of Appeals for the Fifth Circuit has ordered FERC to recalculate a $20.16 million fine levied against BP plc for allegedly manipulating the Texas natural gas market in 2008.

The Federal Energy Regulatory Commission wrongly attempted to expand its Natural Gas Act jurisdiction to cover intrastate gas trading, the circuit court said. 

BP has fought a July 2016 decision by the Commission after it affirmed the findings of an administrative law judge (ALJ) regarding a 2008 market manipulation case (No. 16-60604).

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FERC fined BP and ordered it to disgorge another $207,169 after finding company affiliates had gamed the natural gas...