Energy Transfer Partners LP (ETP) and three affiliates have reached a proposed settlement with FERC enforcement litigation staff that resolves all claims that they manipulated physical natural gas prices at key Texas trading points from late 2003 to 2005.

The settling parties, which also included Energy Transfer Co., ETC Marketing Ltd. and Houston Pipe Line Co., have asked that the joint offer of settlement be deemed uncontested, certified by an administrative law judge (ALJ) and submitted to the Federal Energy Regulatory Commission for approval. FERC has the option to approve or reject the proposed settlement in full or in part.

Given the “sensitive information” in the offer of settlement, the parties asked that the agreement be treated as confidential — only until FERC approves the agreement “in its entirety without modification.”

The offer of settlement, if approved, “will resolve all claims asserted against all respondents” in the enforcement case against ETP. Both sides said the settlement is “fair and reasonable and in the public interest.”

In mid-July Chief ALJ Curtis L. Wagner Jr. suspended FERC enforcement proceedings against ETP to give the sides time to continue settlement negotiations (see Daily GPI, July 13).

In July 2007 FERC accused ETP and affiliates of manipulating physical natural gas prices at the Houston Ship Channel (HSC) and Waha trading hub on various dates from December 2003 through December 2005 (see Daily GPI, July 27, 2007).

FERC proposed potential civil penalties for ETP totaling $82 million — $79 million for the alleged manipulations at the HSC and $3 million for the alleged manipulations at Waha and Permian trading hubs. FERC also proposed disgorgement of $69.9 million, plus interest, in unjust profits.

In March the Commission approved a joint offer of settlement filed by its enforcement staff and ETP’s Oasis Pipeline and affiliates, which essentially closed the enforcement case against the companies without levying any financial penalties (see Daily GPI, March 2). Oasis and affiliates were accused of discriminating against nonaffiliated shippers in favor of affiliated shippers. FERC initially had proposed $15.5 million in civil penalties for Oasis and affiliates for alleged Natural Gas Policy Act violations of undue discrimination and preference.

©Copyright 2009Intelligence Press Inc. All rights reserved. The preceding news reportmay not be republished or redistributed, in whole or in part, in anyform, without prior written consent of Intelligence Press, Inc.