BP pays market manipulation fine but will challenge charge in court – Reuters

BP PLC paid a $24.4 million fine on Dec. 28, 2020, to cover allegations of market manipulation in 2008 but is challenging the allegation in the U.S. Court of Appeals for the Fifth Circuit, Reuters reported Jan. 6, citing a Federal Energy Regulatory Commission regulatory filing.

In July 2016, FERC upheld a decision that BP companies manipulated the price of natural gas in the Houston region in order to profit from market conditions in the aftermath of Hurricane Ike in 2008. FERC also denied a BP request for rehearing. The commission at the time ordered BP to pay civil penalties of nearly $20.2 million and disgorge unjust profits of $207,169.

The oil major has sought to have FERC reopen and dismiss the case and in December 2017 argued that "a significant change in the law" had occurred pertaining to the statute of limitations applied to actions imposing civil penalties and disgorgement.

However, enforcement staff in 2018 urged FERC to reject BP's argument saying that the company "provides neither adequate procedural nor substantive grounds to reopen the proceeding at this late stage."