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Orders to Show Cause Proceedings


Orders to Show Cause Proceedings and Federal District Court Litigation

This page provides significant orders and federal district court papers related to all matters that have proceeded to Orders to Show Cause. Matters are listed in reverse chronological order based on the date the Order to Show Cause issued.

Subject(s) of Investigation Sanctions Imposed or Pending Issues and Orders

BP America Inc., et al.

Proposed $28,000,000 Civil Penalty and other sanctions including disgorgement of unjust profits pending hearing and consideration by the Commission.

Alleged violation of the Commission’s Anti-Manipulation Rule, 18 C.F.R. 1c.1, for sales of natural gas at specific natural gas trading hubs to affect the index price at which related financial instruments settled.  The Commission has set the matter for hearing before an Administrative Law Judge.

Barclays Bank PLC, et al. and FERC v. Barclays Bank PLC et al., Case No. 2:13-cv-02093-TLN-DAD (E.D. Cal.)

$435,000,000 Civil Penalty, Barclays; $34,900,000 Disgorgement, Barclays; $15,000,000 Civil Penalty, trader Scott Connelly; $1,000,000 Civil Penalty each, traders Daniel Brin, Karen Levine, and Ryan Smith.

The Commission issued an Order Assessing Civil Penalties finding a violation of the Commission’s Anti-Manipulation Rule, 18 C.F.R. 1c.2, for trading electricity in the western United States to affect the index price at which related financial instruments settled.  Barclays and the individual traders elected the procedures of FPA section 31(d) (3), in which the Commission assessed a penalty and instituted an action in federal district court to affirm the assessment.

Deutsche Bank Energy Trading, LLC

$1,500,000 Civil Penalty; $172,645 Disgorgement; Compliance Enhancements; Compliance Monitoring.

The Commission issued an Order to Show Cause why it should not assess a penalty for violation of the Commission’s Anti-Manipulation Rule, 18 C.F.R. 1c.2, for trading electricity exports in the California ISO market to affect the value of related congestion revenue rights in that market; and violation of 18 C.F.R. § 35.41(b) for submission of false information to the ISO by improperly designating transactions in contravention to the tariff definitions. The Commission subsequently approved a settlement resolving the matter.

Competitive Energy Services, LLC and Richard Silkman and FERC v. Silkman et al., Case No. 1:13-cv-13054 (D. Mass)

$7,500,000 Civil Penalty, CES; $166,841.13 Disgorgement, CES; $1,250,000 Civil Penalty, Silkman.

The Commission issued an Order Assessing Civil Penalty finding a violation of the Commission’s Anti-Manipulation Rule, 18 C.F.R. 1c.2, for fraudulently inflating baseline energy consumption in the New England ISO market in order to later claim greater energy curtailments, and payments, in the Day-Ahead Load Response Program (demand response). CES and Silkman each elected the procedures of FPA section 31(d) (3), in which the Commission assessed a penalty and instituted an action in federal district court to affirm the assessment.

Lincoln Paper & Tissue, LLC and FERC v. Lincoln Paper & Tissue, LLC, Case No. 1:13-cv-13056-DPW (D. Mass)

$5,000,000 Civil Penalty; $379,016.03 Disgorgement.

The Commission issued an Order Assessing Civil Penalty finding a violation of the Commission’s Anti-Manipulation Rule, 18 C.F.R. 1c.2, for fraudulently inflating baseline energy consumption in the New England ISO market in order to later claim greater energy curtailments, and payments, in the Day-Ahead Load Response Program (demand response).  Lincoln elected the procedures of FPA section 31(d) (3), in which the Commission assessed a penalty and instituted an action in federal district court to affirm the assessment.

Rumford Paper Company

$10,000,000 Civil Penalty; $2,836,419.08 Disgorgement; Compliance Enhancements; Compliance Monitoring.

The Commission issued an Order Assessing Civil Penalty finding a violation of the Commission’s Anti-Manipulation Rule, 18 C.F.R. 1c.2, for fraudulently inflating baseline energy consumption in the New England ISO market in order to later claim greater energy curtailments, and payments, in the Day-Ahead Load Response Program (demand response).  The Commission subsequently approved a settlement resolving the matter.

Moussa I. Kourouma d/b/a Quntum Energy LLC

$50,000 Civil Penalty, affirmed by the United States Court of Appeals, District of Columbia Circuit.

The Commission issued a final order assessing a civil penalty for violation of 18 C.F.R. § 35.41(b) for submission of false information to the Commission in an application for Market Based Rate authority.  Kourouma petitioned pursuant to FPA section 31(d)(2)(B) for review in the U.S. Court of Appeals for the District of Columbia Circuit, which denied the petition.

Seminole Energy Services, LLC, et al.

$300,000 Civil Penalty; $271,315 Disgorgement; Compliance Monitoring.

The Commission issued an Order to Show Cause why it should not assess a penalty for violation of Commission’s Open Access Transportation requirement prohibiting buy/sell natural gas transactions.  The Commission subsequently approved a settlement resolving the matter.

National Fuel Marketing Company, LLC, et al.

$290,000 Civil Penalty; Compliance Monitoring.

The Commission issued an Order to Show Cause why it should not assess a penalty for violation of Commission’s Open Access Transportation requirement that natural gas shippers must have title. The Commission subsequently approved a settlement resolving the matter.

Energy Transfer Partners, L.P., et al.

$5,000,000 Civil Penalty; $25,000,000 Disgorgement.

The Commission issued an Order to Show Cause why it should not assess a penalty for violation of Commission’s former anti-manipulation rule, 18 C.F.R. § 284.403(a) (2005), for sales of natural gas at specific natural gas trading hubs to affect the price at which related financial instruments settled.  The Commission subsequently approved a settlement resolving the matter.

Brian Hunter

$30,000,000 Civil Penalty, overturned on jurisdictional grounds by the United States Court of Appeals, District of Columbia Circuit.

The Commission issued a final Order Assessing Civil Penalties finding, after adjudication before an ALJ, a violation of the Commission’s Anti-Manipulation Rule, 18 C.F.R. § 1c.1, for trading natural gas futures contracts on the NYMEX to affect the index price at which related financial instruments settled. Hunter petitioned pursuant to NGA section 717r(b) for review in the U.S. Court of Appeals for the District of Columbia Circuit, which granted the petition.

Amaranth Advisors, LLC, et al.

$7,500,000 Civil Penalty.

The Commission issued an Order to Show Cause why it should not assess a penalty for violation of Commission’s Anti-Manipulation Rule, 18 C.F.R. § 1c.1, for trading natural gas futures contracts on the NYMEX to affect the index price at which related derivative and swap positions settled.  The Commission subsequently approved a settlement resolving the matter.




Updated: June 4, 2014