FERC v. National Fuel Marketing LLC

The Federal Energy Regulatory Commission (FERC) on April 7, 2011, approved a settlement between its Office of Enforcement and Analysis Group client National Fuel Marketing Company LLC and affiliates. A team from Analysis Group, including Principal Eric Korman, was retained by Van Ness Feldman, PC, to analyze National Fuel Marketing's participation in the 2007 Cheyenne Plains open season auction on pipeline capacity. The team also examined the Office of Enforcement's allegations of market manipulation, assessed National Fuel Marketing's compliance with FERC's "shipper must have title" requirement, and evaluated a proposed penalty of $4.5 million. Our affiliate filed two affidavits disputing the charges. At issue was FERC's policy on "multiple-affiliate bidding." As part of the settlement, the commission dropped charges of market manipulation and fraud against National Fuel Marketing, which paid a $290,000 civil penalty.