District

Economic activity increased in all 12 districts monitored by the Federal Reserve between mid-February and the end of March, with hiring in the energy sector picking up steam in the Dallas, Kansas City and Minneapolis districts, home to the some of the nation’s prolific shale plays.

The U.S. Fifth District Court of Appeals has denied a plaintiff’s’ petition for a rehearing of the Southeast Louisiana Flood Protection Authority-East’s (SLFPA-E) lawsuit against oil and gas companies alleging damages to coastal land. Plaintiffs have exhausted all avenues of litigation, except through the U.S. Supreme Court. “We are pleased with the panel’s decision to uphold the U.S. district court decision to do away with the SLFPA-E lawsuit. These frivolous lawsuits have contributed to the litigious hellhole we now find our state in.” said Don Briggs, president of the Louisiana Oil and Gas Association. “This action throws cold water on current litigation against Louisiana’s oil and gas industry.” In July 2013, the Board of Commissioners of SLFPA-E filed a lawsuit in Louisiana state court against 97 exploration and production oil and gas companies alleging that their activities had damaged coastal lands and that they also “increased the risk of flooding due to storm surges and necessitated costly flood protection measures.” The district concluded that on all of the board’s claims, none of the board’s stated grounds for relief constituted a claim under state law. The board then appealed. Last March the appeals court affirmed the district court’s dismissal of the claim.

Getting called out by FERC’s Office of Enforcement (OE) for alleged market manipulation will give any energy company and its lawyers heartburn, but the blow to the gut is particularly acute when it’s a natural gas rather than a power case.

Total Gas & Power North America Inc. (TGPNA) has asked a federal district court judge to reconsider a decision that the company may not defend itself against FERC enforcement staff allegations of natural gas trading manipulation in court — a conclusion that would effectively return the case to the Commission.

With low oil prices lasting longer than many expected, banks in the energy-rich 11th Federal Reserve District saw loan growth and profitability decline in 2015, according to a new report from the Federal Reserve Bank of Dallas (Fed).

BP plc agreed to pay $175 million between 2016 and 2017 to settle a class action lawsuit that sought up to $2.5 billion, which claimed the company deceived shareholders by downplaying the severity of the April 2010 Macondo well blowout. The settlement, BP said, “does not resolve other securities-related litigation in connection with the Gulf of Mexico oil spill.” In 2014 U.S. District Court Judge Keith Ellison of the Southern District in Houston approved Multidistrict Litigation case No. 2185 (see Daily GPI,May 16, 2014). Investors that bought BP American depository shares from April 26 to May 28, 2010 had been allowed to pursue claims that BP executives’ public statements “did not reflect the magnitude of the disaster facing the company.” BP officials had said in 2010 that 1,000-5,000 b/d of oil was leaking from the Macondo well, when internal estimates suggested that the figure was 10 times higher.

The Federal Energy Regulatory Commission (FERC) has extended the response time to July 12 on a show cause order issued to Total Gas & Power North America Inc. (TGPNA) for alleged market manipulation. The show cause order was issued April 28 and had included just 30 days to respond. TGPNA is challenging the FERC’s jurisdiction to pursue the case at all in the U.S. District Court for the Western District of Texas (see Daily GPI, May 3). The company had asked for an extension until the later of 45 days after the federal district court issues an order resolving the threshold jurisdictional issues or 60 days beyond the current due date. The Commission responded with the July 12 date and said the Office of Enforcement staff shall have a 45 day extension of time to file a reply with the Commission (making the reply due 75 days after respondents’ answer is filed).

The Federal Energy Regulatory Commission (FERC) has extended the response time to July 12 on a show cause order issued to Total Gas & Power North America Inc. (TGPNA) for alleged market manipulation. The show cause order was issued April 28 and had included just 30 days to respond. TGPNA is challenging the FERC’s jurisdiction to pursue the case at all in the U.S. District Court for the Western District of Texas (see Daily GPI, May 3). The company had asked for an extension until the later of 45 days after the federal district court issues an order resolving the threshold jurisdictional issues or 60 days beyond the current due date. The Commission responded with the July 12 date and said the Office of Enforcement staff shall have a 45 day extension of time to file a reply with the Commission (making the reply due 75 days after respondents’ answer is filed).

A former landman who worked for ExxonMobil Corp.’s XTO Energy Inc. office in Fort Worth, TX, has been sentenced to 63 months in federal prison and ordered to pay $1 million in restitution for committing oil and gas mail fraud. Steven E. Fisackerly, 33, of Spring, TX, pleaded guilty to one count of mail fraud, according to the U.S. District Court for the Northern District of Texas. Fisackerly worked for XTO from September 2008 to March 2012. He admitted that beginning in January 2009 and ending about January 2011, he “devised and ran a scheme to defraud XTO” by altering agreements for land in Harrison County, WV, federal prosecutors said. Fisackerly used a fraudulent company to route nine checks that XTO issued for bogus transactions that together totaled more than $1 million. District Judge Terry Means ordered Fisackerly to report to prison on Jan. 4. An XTO spokeswoman said the company had “cooperated fully” in the investigation.