Energy Trading Partners To Pay $5M In FERC Dispute

DALLAS (AP) — Energy Transfer Partners LP will pay $5 million to the federal government as part of a previously announced settlement over claims by regulators against the natural gas and propane gas distributor's trading activities.

The company said Tuesday the Federal Energy Regulatory Commission had approved the agreement and in turn will dismiss all claims against it.

In July, FERC alleged the company had engaged in improper trading activities by manipulating or artificially suppressing prices on a number of occasions, according to an SEC filing earlier this year.

FERC had been seeking $69.9 million in disgorgement of profits, plus interest, and $82 million in civil penalties relating to these market manipulation claims, the filing said.

In March 2009, the company entered into a separate settlement agreement with FERC related to allegations against its Oasis Pipeline subsidiary. That agreement did not require the company to make any payments.

The company's chief executive, Kelcy Warren, said in a statement: "I continue to be disgusted by the manner in which the FERC Enforcement Staff administers the FERC's enforcement powers."

A spokeswoman for FERC declined to comment.

In August, Energy Transfer Partners said it had agreed on a settlement with FERC, but did not disclose the terms.

Separately, Energy Transfer Partners said it will establish a $25 million fund to settle related third-party claims against the company.

Units of Energy Transfer Partners rose 26 cents to $43.42 in afternoon trading.

(This version CORRECTS name of company in hed.)