Claims

The former chief of the American Electric Power’s (AEP) Gulf trading desk agreed to pay a $350,000 fine to the Commodity Futures Trading Commission (CFTC) to settle charges that he directed AEP natural gas traders to submit misleading or knowingly inaccurate information to two Platts’ publications, Gas Daily and Inside FERC’s Gas Market Report for almost two years (see Daily GPI, Sept. 21, 2005).

Dallas-based Pioneer Natural Resources said Friday it will pay $32 million to settle claims made in a class action lawsuit filed by John Steven Alford and Robert Larrabee related to alleged improper deductions from royalties on Hugoton Basin oil and gas production. The lawsuit was filed in the 26th Judicial District Court in Stevens County, KS.

A group of House Democrats led by Rep. Edward Markey of Massachusetts sent a letter to the American Petroleum Institute (API) Thursday disputing claims by oil and natural gas producers that a proposal restricting royalty relief would lead to the breach of existing leases or would bar so many U.S. producers from purchasing new leases that it would effectively outsource production in the Gulf of Mexico and elsewhere to foreign companies.

Sempra Energy and its two major utility subsidiaries Wednesday announced they have reached a $350 million settlement agreement resolving claims in several class action lawsuits related to the 2000-2001 western U.S. energy crisis, including the Continental Forge, Nevada and some natural gas price reporting cases. The agreement is subject to the approvals of the San Diego Superior Court where a jury trial is now ongoing, the Nevada District Court for Clark County, City of Los Angeles and the City of Long Beach, CA (see Daily GPI, Nov. 1, 2005).

In response to concerns and claims that “runaway” oil service costs might finally be catching up to exploration and production (E&P) companies, Raymond James analysts say they believe it to be unfounded.

Despite claims to the contrary, the influence of non-commercial trading in the gas futures market is growing rapidly and the industry will have to adapt, said Tom Lord, president of Volatility Managers LLC. The question of how it will adapt is not easy to answer, but the process is likely to be painful for most, and could include an exodus of industrial customers seeking shelter in countries with regulated markets.

Despite claims to the contrary, the influence of non-commercial trading in the gas futures market is growing rapidly and the industry will have to adapt, said Tom Lord, president of Volatility Managers LLC. The question of how it will adapt is not easy to answer, but the process is likely to be painful for most, and could include an exodus of industrial customers seeking shelter in countries with regulated markets.

Another former Enron Corp. official reached a plea agreement with federal prosecutors in Houston last week, a sign that the Enron Task Force is continuing its two-year investigation of the failed energy merchant and its management team.

Another former Enron Corp. official reached a plea agreement with federal prosecutors in Houston this week, a sign that the Enron Task Force is continuing its two-year investigation of the failed energy merchant and its management team.