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Article: FERC fines companies more than $9.5 million for pipeline capacity release violations.(Federal Energy Regulatory Commission)
- Article from:
- Mondaq Business Briefing
- Article date:
- July 21, 2009
- Author:
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These cases add to FERC's growing enforcement precedent in the area of capacity release.
On June 30, 2009, the Federal Energy Regulatory Commission (FERC) approved four stipulation and consent agreements in which natural gas companies agreed to pay civil penalties and disgorgement, and to adopt various compliance measures to resolve alleged violations of FERC's rules and policies governing capacity on natural gas pipelines. The alleged violations include circumvention of the competitive bidding requirements for long-term, discounted rate capacity releases (flipping); failure to comply with the shipper-must-have-title requirement; and breach of the prohibition on ...