TotalEnergies Gas & Power N.A to Pay $5,000,000 Civil Penalty

Summary:

The Commission issued an Order to Show Cause (OSC) directing TGPNA, Hall, and Tran to show the Commission why they should not be found to have violated section 4A of the Natural Gas Act and the Commission’s Anti-Manipulation Rule, 18 C.F.R. § 1c.1, by engaging in a scheme to manipulate the price of natural gas at four locations in the southwest United States between June 2009 and June 2012. On July 15, 2021, the Commission set the matter for hearing before an Administrative Law Judge. On September 19, 2024, the Commission issued an order terminating the hearing and holding the proceeding in abeyance. On January 8, 2025, the Commission issued an Order approving a Stipulation and Consent Agreement (Agreement) between the Office of Enforcement (Enforcement) and TGPNA. The Agreement resolves all claims and allegations: (1) in Docket No. IN12-17, including the OSC and the matters set for hearing; and (2) the proceeding initiated by TGPNA, Hall, and Tran in the U.S. District Court for the Southern District of Texas, TotalEnergies Gas & Power N.A., Inc. et al. v. Federal Energy Regulatory Commission, et al., Case No. 4:22-cv-4318. To fully resolve the claims and allegations, TGPNA will pay $5,000,000 in restitution to certain agreed-upon non-governmental organizations (NGOs) pursuant to a non-public schedule attached to the Agreement and, upon payment, will move jointly to dismiss with prejudice the Federal Court Litigation on behalf of all parties to the litigation.

Additional Discussion:

KEY POINTS

1. Parties Involved: The agreement is between the Office of Enforcement (Enforcement) and TotalEnergies Gas & Power North America, Inc. (TGPNA), along with other entities and individuals.
2. Resolution: The agreement resolves all claims and allegations in Commission Docket No. IN12-17 and the Federal Court Litigation initiated by TGPNA, Aaron Hall, and Therese Tran.
3. Restitution Payment: TGPNA will pay $5,000,000 in restitution to certain agreed-upon non-governmental organizations (NGOs).
4. Dismissal of Litigation: Upon payment, TGPNA will move to dismiss the Federal Court Litigation with prejudice, and the Commission will dismiss its claims and allegations in the FERC Enforcement Matter with prejudice.
5. No Admission of Liability: The agreement is a settlement and compromise of disputed claims and is neither an admission of liability by TGPNA nor a concession by Enforcement that its claims are not well-founded.
6. Investigation Background: The investigation began in 2012 to determine if TGPNA engaged in manipulation in violation of the Natural Gas Act (NGA) section 4A and the Commission’s Anti-Manipulation Rule.
7. Procedural History: The document outlines the procedural history, including various orders and stays issued by the Commission and the District Court, and references to Supreme Court decisions impacting the case.
8. Effective Date and Compliance: The agreement becomes effective upon the Commission’s approval without material modification.
   TGPNA must make the restitution payment within 10 business days of the effective date.
9. Binding Agreement: The agreement binds TGPNA and its agents, successors, and assignees, and does not create additional obligations beyond those identified in the agreement.
10. Commission’s Commitment: The Commission commits to never pursuing or asserting the claims and allegations in any other forum once the agreement is approved and the restitution is paid.

Associated Files: 20250110-190FERC61014-IN12-17-000-Total et al-Settlement Agreement (1)