BP Plc faces millions of dollars in penalties and surrendered profits after a Federal Energy Regulatory Commission judge concluded Thursday that the company manipulated natural gas markets in Texas in 2008.
FERC Administrative Law Judge Carmen Cintron in Washington issued the nonbinding ruling.
In 2013, federal energy regulators proposed a $28 million penalty against BP, along with disgorgement of $800,000-plus interest. Cintron's findings said BP's manipulation resulted in financial losses during 49 trading days.
"The evidence in this case shows that the Texas team had hundreds of affirmative acts in furtherance of the manipulative scheme during the investigative period," the judge said.
The judge's decision will be taken up for consideration by FERC's five-member commission, which will issue a final ruling on the case.
BP spokesman Geoff Morrell said the company disagrees with the ruling and will appeal the decision to the full commission.
"The evidence overwhelmingly demonstrated that BP's natural gas traders did not engage in any market manipulation," Morrell said in an email. "As the leading marketer of natural gas in North America, BP is committed to adhering to the highest ethical standards, conducting all trading in compliance with all laws and regulations, and maintaining a strong control and compliance environment."
BP previously said the case should be dismissed because the trades at issue are outside the agency's jurisdiction. BP can appeal a final order to a federal court.
FERC brought charges against London-based BP in August 2013. Traders at BP's Southeast natural gas desk were accused of a scheme to manipulate natural gas prices at the Houston Ship Channel hub from Sept. 18 through Nov. 30, 2008.
The Thursday ruling comes after BP reached a record $18.7 billion agreement in July to settle claims from the 2010 Deepwater Horizon oil spill.
Business on 08/14/2015