Reuters: Regulatory News: UPDATE 1-FERC seeks BP response to natgas market manipulation

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UPDATE 1-FERC seeks BP response to natgas market manipulation Aug 5th 2013, 13:21 Tweet Share this Email Print Related Topics Stocks » Regulatory News » Markets » Mutual Fund Center » ETFs News » Energy » Financials » Mon Aug 5, 2013 9:21am EDT By Scott DiSavino Aug 5 (Reuters) - U.S. federal energy regulators on Monday ordered BP Plc to respond to allegations of natural gas market manipulation, threatening the energy company with fines near $29 million. The Federal Energy Regulatory Commission's (FERC) Office of Enforcement alleged BP manipulated the natural gas market at the Houston Ship Channel from mid-September 2008 through November of that year. The commission said BP has 30 days to file a reply to its so-called 'show cause' order. FERC posted the original allegations in 2011. Monday's order marks the next stage in proceedings and indicates that the regulator believes there is a case to answer. The regulator said its Office of Enforcement alleged BP's Texas-based Southeast Gas Trading desk bought and sold physical gas at the Houston Ship Channel in a way designed to increase the value of BP's financial paper position. The total fines include a penalty of $28 million and $800,000 in profits, plus interest, from the alleged trading scheme. FERC has been vigilant in pursuing banks and other energy companies for entering loss making trades in one market in a bid to make gains in another. Since the U.S. Congress bolstered FERC's enforcement power in 2005 following the California energy crisis and the Enron scandal, the regulator has pursued several high profile market manipulation cases against power companies, banks and now oil companies. FERC last month settled a power market manipulation case with JPMorgan Chase & Co for $410 million and is seeking $470 million from Barclays Plc over allegations of similar activities. Barclays has said it will fight the proposed fine. Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.

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