Report of the Compliance & Enforcement Committee

Energy Law Journal, January 1, 2011 | Go to article overview

Report of the Compliance & Enforcement Committee


This is the first report of the Energy Bar Association's Compliance & Enforcement Committee, and it summarizes key federal enforcement and compliance developments in 2010 of particular interest to energy law practitioners, including select decisions, orders, and rules of the Federal Energy Regulatory Commission (FERC), the Commodity Futures Trading Commission (CFTC), the Department of Justice (DOJ), the Department of Energy (DOE) and other relevant federal agencies. Certain decisions, orders, and rules from prior years are summarized to provide appropriate context.*

I. THE FEDERAL ENERGY REGULATORY COMMISSION

The Energy Policy Act of 20051 (EPAct 2005) expanded the enforcement powers of the Federal Energy Regulatory Commission (FERC). The Act amended both the Natural Gas Act (NGA) and the Federal Power Act (FPA) to provide the FERC with broad civil penalty authority.2 The FERC has issued orders implementing this authority both in generic policy statements and rules as well as in individual investigation proceedings.3

A. Rules and Policy Statements

1. Market Manipulation

EPAct 2005 added a new section 4A to the NGA making it unlawful for any market participant to use or employ any manipulative or deceptive device (as those terms are used in section 10(b) of the Securities Exchange Act) in connection with a FERC-jurisdictional transaction for the sale or purchase or transportation of natural gas.4 In 2006, the FERC promulgated rules prohibiting market manipulation closely tailored to rule 10b-5 of the Securities Exchange Commission.5

2. Enforcement Policy

In October 2005, the FERC issued its first policy statement on enforcement setting forth the factors it would take into account in determining remedies for violations, including applying its enhanced civil penalty authority under EPAct 2005.6 In May 2008, the FERC revised its enforcement policies to give the industry a fuller picture as to how its investigative processes work.7 It also issued an instant final rule amending its regulations to codify the right of an entity that is the subject to an investigation to be informed that staff intends to seek action against it and have an opportunity to provide Commissioners with a written non-public response to staff's allegations.8

3. Obtaining Guidance

In May 2008, the FERC issued an interpretive order discussing the mechanisms by which interested parties can obtain guidance regarding FERC's regulatory requirements.9 The FERC stated that to the extent that formal guidance is needed, persons could: (1) petition for a declaratory order in order to terminate a controversy or remove uncertainty regarding a matter within the FERC's jurisdiction; (2) request a no-action letter on any issue that falls within the scope of FERC's jurisdiction, with certain exceptions; (3) request an opinion letter from the General Counsel to obtain legal guidance regarding the interpretation of any statute or implementing regulation under FERC jurisdiction; (4) seek an accounting interpretation from the FERC's Chief Accountant for guidance on the implementation of standards issued by the Financial Accounting Standards Board and existing or emerging industry-wide or entity specific accounting issues within the context of the Uniform System of Accounts; and (5) contact the Enforcement Hotline to obtain informal guidance on all areas within FERC jurisdiction, except matters before FERC in docketed proceedings.10

On April 15, 2010, the FERC issued an instant final rule transferring dispute-related calls regarding the construction of interstate pipelines from the Enforcement Hotline to the Dispute Resolution Service effective May 1.11 The FERC explained that its Office of Enforcement, which operates the Enforcement Hotline, is focused on other matters, including fraud, market manipulation, violations of reliability standards, anticompetitive conduct, and conduct that threatens the transparency of regulated markets. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Report of the Compliance & Enforcement Committee
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.