[Federal Register Volume 74, Number 185 (Friday, September 25, 2009)]
[Notices]
[Pages 48948-48950]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-23145]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. IN06-3-003]


Energy Transfer Partners, L.P.; Energy Transfer Company; ETC 
Marketing, Ltd.; Houston Pipeline Company; Public Notice of Settlement

September 21, 2009.
    Take notice that on September 21, 2009, pursuant to Rule 602 of the 
Commission's Rules of Practice and Procedure, 18 CFR 385.602 (2009), 
the Commission accepted and approved the Stipulation and Consent 
Agreement (``Agreement'') entered into by Energy Transfer Partners, 
L.P., et al. (``ETP'') and Enforcement Litigation Staff regarding 
settlement of Docket No. IN06-3-003.\1\ Concurrently with this Notice, 
the Agreement is being filed as a public document with the Secretary of 
the Commission.
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    \1\ Capitalized terms in this Public Notice have the meaning 
provided in the Agreement and the Agreement constitutes the complete 
agreement of the Settling Parties. All matters in this docket that 
pertained to ETP's affiliate, Oasis Pipeline, L.P., were resolved by 
a prior settlement approved by the Commission in Oasis Pipeline, 
L.P., 126 FERC ] 61,188 (2009).
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    ETP and Enforcement Litigation Staff jointly state that the 
Agreement resolves all Claims alleged or asserted in this Proceeding by 
the Commission and Enforcement Litigation Staff against ETP, including 
the named respondents, any other ETP Entity, and any of its current or 
former directors, officers, employees, agents, or other 
representatives, relating to manipulation or attempted manipulation of 
natural gas prices in alleged violation of the Commission's former 
Market Behavior Rule 2.\2\
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    \2\ See Order No. 644, 105 FERC ] 61,217 (2003), formerly 
codified at 18 CFR Sec.  284.403(a) (2005). Market Behavior Rule 2 
was rescinded in Order No. 673, 114 FERC ] 61,166 (2006).
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    By resolving all Claims through the Agreement, ETP and Enforcement 
Litigation Staff agree that the Commission shall dismiss all Claims 
against ETP with prejudice, terminate all investigations in this 
Proceeding, and forever release ETP and the ETP Entities and their 
current or former directors, officers, employees, agents, and other 
representatives, and any successor to ETP or the ETP Entities, from any 
and all administrative or civil claims for civil penalties and legal 
and equitable relief, including disgorgement of profits and 
restitution, under any and all theories of alleged liability based on 
or arising under in whole or part, the Claims.
    Under the terms of the Agreement, ETP will pay Five Million Dollars 
($5,000,000.00) in civil monetary penalties to the United States 
Treasury.
    In addition, under the terms of the Agreement, ETP will establish a 
Fund in the amount of Twenty-Five Million Dollars ($25,000,000.00) for 
the purpose of disgorging to Final Opt-In Fund Participants alleged 
unjust profits based on or arising from ETP's Alleged Conduct. Third 
Parties that have asserted claims against ETP in private litigation or 
arbitration may become Fund Participants. If, after the allocation of 
money to Final Opt-In Fund Participants, there is any Remaining Fund 
Amount, such amount shall be available for the purpose of compensating 
Third Parties, in whole or part, in connection with the Private 
Settlement of Pending Claims or Future Claims.
    For purposes of this Proceeding, ETP neither admits nor denies the 
Claims. As specified in the Agreement, ETP does not admit or concede to 
any Third Party actual or potential fault, wrongdoing, or liability in 
connection with any facts or claims that have been or could have been 
alleged against it with respect to ETP's Alleged Conduct.
    No later than sixty (60) days from the date of the publication of 
this Notice in the Federal Register (the ``Fund Notice Period''), any 
individual, business entity, or putative class that believes it may 
have a claim against any ETP Entity, with respect to the allegations 
covered by the Agreement, and elects to become a Conditional Opt-In 
Fund Participant, shall cause to be filed with the Commission and 
served upon ETP and Enforcement Litigation Staff a written, verified 
Conditional Notice as attached.\3\ No claims filed after expiration of 
the sixty-day Fund Notice Period shall be considered or eligible for 
participation in the Fund. Such submissions shall be treated as subject 
to the terms of the Protective Order entered in this Proceeding on 
February 11, 2008, Energy Transfer Partners, L.P., 122 FERC ] 61,122 
(2008), as such Protective Order may be modified by the Commission or 
by an administrative law judge.
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    \3\ The following forms are attached to this notice: (1) 
Conditional Notice to Participate in Settlement Fund, along with 
associated Declaration of Authorized Representative and Affidavit 
forms; and (2) Declaration of Final Opt-in Fund Participant and 
Waiver and Release of Claims, along with an associated Declaration 
of Authorized Representative form.
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    Within one hundred twenty (120) days after the close of the Fund 
Notice Period, the Fund Administrator shall certify to the Commission 
and simultaneously serve the Settling Parties and each Conditional Opt-
In Fund Participant an Initial Fund Allocation Report. This report 
shall describe the data submitted by each Conditional Fund Participant, 
the basis for its claim, its total claim, if any, supported by the data 
submitted, the initial allocation of the Fund, and the methodology 
employed in reaching the initial allocation of the Fund. The Agreement 
provides for Commission review and approval of the report. Within 
thirty (30) days after the Initial Fund Allocation Report becomes 
final, each Conditional Opt-In Fund Participant shall declare in

[[Page 48949]]

writing whether or not it accepts the allocated amount to become a 
Final Opt-In Fund Participant. As a condition of accepting the 
allocated amount, each Final Opt-In Participant must agree to forever 
waive and release all claims against ETP based on or arising, in whole 
or part, from ETP's Alleged Conduct as specified in the Agreement. No 
individual, business entity, or putative class that becomes a 
Conditional Opt-In Fund Participant or a Final Opt-In Fund Participant 
shall become a Party to this Proceeding.
    No portion of the Fund shall be withdrawn by, recouped by, or 
revert to ETP. If, at the close of the allocation process set forth in 
the Agreement, there is any amount of money remaining in the fund, that 
amount shall be paid to the United States Treasury.
    For additional information regarding the Agreement, please contact:

Enforcement Litigation Staff:
    John R. Kroeger, Division of Investigations, Office of Enforcement, 
Federal Energy Regulatory Commission, 888 First Street, NE., 
Washington, DC 20426, T: (202) 502-8177, E: <a href="/cdn-cgi/l/email-protection#2a40454244044158454f4d4f586a4c4f5849044d455c"><span class="__cf_email__" data-cfemail="6b01040305450019040e0c0e192b0d0e1908450c041d">[email protected]</span></a>.
Energy Transfer Partners, L.P., et al.
    William S. Scherman, Skadden, Arps, Slate, Meagher & Flom, LLP, 
1440 New York Avenue, NW., Washington, DC 20005, T: (202) 371-7000, E: 
<a href="/cdn-cgi/l/email-protection#13447a7f7f7a727e3d60707b76617e727d536078727777767d3d707c7e"><span class="__cf_email__" data-cfemail="93c4fafffffaf2febde0f0fbf6e1fef2fdd3e0f8f2f7f7f6fdbdf0fcfe">[email protected]</span></a>.
    Conditional Notices are due no later than sixty (60) days after 
publication of this Notice in the Federal Register.

Kimberly D. Bose,
Secretary.

UNITED STATES OF AMERICA BEFORE THE FEDERAL ENERGY REGULATORY 
COMMISSION

Energy Transfer Partners, L.P.
Energy Transfer Company
ETC Marketing, Ltd.
Houston Pipeline Company
Docket No. IN06-3-003

Conditional Notice to Participate in Settlement Fund

    Pursuant to the Federal Energy Regulatory Commission's ------, 
2009 Order Approving Settlement, ------ FERC ] ---- (2009), and 
Public Notice, -- Fed. Reg. -- [date of notice], and in accordance 
with the Stipulation and Consent Agreement (the ``Agreement'') dated 
August 26, 2009 by ETP \1\ and Enforcement Litigation Staff, the 
undersigned, a duly authorized representative of [company or other 
entity], hereby gives notice that [company or other entity] on 
behalf of itself and -------- [identify each affiliate, subsidiary 
or other entity that may have a Fund Claim], believes it may have a 
Fund Claim against one or more ETP Entities arising from ETP's 
Alleged Conduct and elects to become a Conditional Opt-In Fund 
Participant under the terms of the Agreement.
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    \1\ Capitalized terms in this Conditional Notice have the 
meaning provided in the Agreement.
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    [The company or other entity] hereby states and acknowledges 
that, should it accept that ultimate allocation of the Fund by the 
Fund Administrator and elect to become a Final Opt-In Fund 
Participant, it and each of its affiliates, subsidiaries, or other 
entities shall forever waive and release all claims against ETP 
based on or arising from, in whole or in part, the Claims and ETP's 
Alleged Conduct as provided in Paragraph 64 of the Agreement.
    [The company or other entity] further states and acknowledges 
that by such election, it shall not be a party to the Agreement or a 
party to the Proceeding.
    The basis for the Fund Claim of [company or other entity], 
together with its affiliates and related legal entities, is as 
follows:

    [Statement of how the Conditional Opt-In Fund Participant was 
purportedly injured by the Claims or ETP's Alleged Conduct]

    Attached hereto are the following verified documents and data 
that support the Fund Claim and accompanying affidavits of the 
following individuals:

[Description of verified documentation and other data showing 
sufficient information to support the Fund Claim and a statement of 
how the Conditional Opt-In Fund Participant was purportedly injured 
by the Claims or ETP's Alleged Conduct. Such information for 
physical transactions shall include, for example, all monthly sales 
and purchases made by the Third Party and its affiliates or other 
related entities based on, in whole or part, the IFERC HSC Index for 
any or all of the months of September 2003 through December 2006 
inclusive; whether the transaction was a sale or purchase; the 
counter-party for each sale or purchase; the execution date of the 
transaction; the applicable sales or purchase price per MMBtu; all 
related positions; and all other information necessary to establish 
that the Third Party allegedly suffered a loss. Such information for 
derivative financial transactions shall include, for example, all 
instruments owned by the Third Party or its affiliates or other 
related entities based on, in whole or part, the IFERC HSC Index for 
any or all of the months of September 2003 through December 2006 
inclusive; whether the instrument had a long or short exposure to 
the IFERC HSC Index; the counter-party for each instrument; the 
execution date of the transaction; the applicable price for each 
instrument; all related positions; and all other information 
necessary to establish that the Third Party allegedly suffered a 
loss. The Conditional Notice may include any other information on 
which a Fund Claim is based.]

    Attached hereto and described below as necessary is any other 
information upon which a Fund Claim is based:

[Description of attached documentation or statement of additional 
information.]

    This submission is subject to the Commission's February 11, 2008 
Order Adopting Protective Order and Appendix thereto, Energy 
Transfer Partners, L.P., 122 FERC ] 61,122 (2008), as it may be 
modified by the Commission or the Fund Administrator.
    Electronic copies of this notice, including all attachments, are 
being served on each person designated as a receiving representative 
of the Settling Parties to the Agreement.

    Respectfully submitted,

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[Authorized Representative]
[Name, title, company or other entity, business address, telephone 
and email]

UNITED STATES OF AMERICA BEFORE THE FEDERAL ENERGY REGULATORY 
COMMISSION

Energy Transfer Partners, L.P.
Energy Transfer Company
ETC Marketing, Ltd.
Houston Pipeline Company
Docket No. IN06-3-003

COUNTY OF--------------------------------------------------------------

STATE OF---------------------------------------------------------------

Declaration of [Authorized Representative]*

    I, [Authorized Representative], declare under penalty of perjury 
that I am the authorized representative of [company or other 
entity], its affiliates and related legal entities, with the 
authority to bind [company or other entity], its affiliates and 
related legal entities, and that the foregoing Conditional Notice to 
Participate in Settlement Fund, together with all attachments, is 
true, correct, and complete to the best of my information, 
knowledge, and belief.

    Executed on this -- day of -- 2009.

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[Authorized Representative]
[Name, title, company or other entity]

Subscribed and Sworn to before me
This -- day of -- 2009.

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Notary Public
My Commission Expires:

    * [To be submitted by the duly authorized representative.]

UNITED STATES OF AMERICA BEFORE THE FEDERAL ENERGY REGULATORY 
COMMISSION

Energy Transfer Partners, L.P.
Energy Transfer Company
ETC Marketing, Ltd.
Houston Pipeline Company
Docket No. IN06-3-003

COUNTY OF--------------------------------------------------------------
STATE OF---------------------------------------------------------------

Affidavit of [Affiant]*

    I, [Affiant], declare under penalty of perjury that I am [title] 
of [company or other entity] doing business at [business address] 
and that the attached documents and data entitled [identify attached 
documents and data] submitted in support of the claim of [company or 
other entity] on behalf of itself, its affiliates and all related 
legal entities, is true, correct, and complete to the best of my 
information, knowledge, and belief.

    Executed on this -- day of -- 2009.

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[[Page 48950]]

[Affiant]
[Name, business address, telephone]

Subscribed and Sworn to before me
This -- day of -- 2009.

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Notary Public
My Commission Expires:

    * [To be submitted for each affiant necessary to verify the 
documents and data submitted.]

Declaration of Final Opt-In Fund Participant and Waiver and Release of 
Claims

    Pursuant to the Federal Energy Regulatory Commission's ------ 
2009 Order Approving Settlement, -- FERC ] ---- (2009), and Public 
Notice, -- Fed. Reg. ---- [date of notice], and in accordance with 
the terms of the Stipulation and Consent Agreement (the 
``Agreement'') dated August 26, 2009 by and among ETP \1\ and 
Enforcement Litigation Staff, the undersigned, a duly authorized 
representative of [company or other entity and each subsidiary, 
affiliate, or other legal entity], hereby states that [company or 
other entity] accepts the amount of $[amount of allocation] 
allocated to it by the Final Fund Allocation Report of [date of 
Final Fund Allocation Report], 2010 and elects to become a Final 
Opt-In Fund Participant pursuant to the terms and conditions 
specified in the Agreement.
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    \1\ Capitalized terms in this Final Notice have the meaning 
provided in the Agreement.
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    [The company or other entity] hereby states and acknowledges 
that, by such election for itself, its affiliates and all other 
related legal entities, it forever waives and releases each and 
every ETP Entity, and each of their respective, current and former 
directors, officers, employees, agents or other representatives, 
from each and every past, existing and future claim for civil 
damages and/or penalties and/or equitable relief, including but not 
limited to disgorgement and restitution, whether known or unknown, 
suspected or unsuspected, based on or arising from, in whole or 
part, the Claims or ETP's Alleged Conduct. Such claims include, but 
are not limited to any claims relating to ETP's Alleged Conduct 
arising under the Natural Gas Act, the Natural Gas Policy Act of 
1978, the Energy Policy Act of 2005, the Commodity Exchange Act, and 
any regulation thereunder, any federal or state antitrust law or 
consumer protection law, however denominated, and any state or 
common law tort theory, contract theory or equitable theory.
    This declaration is final and binding and may not be qualified 
or withdrawn.
    Electronic copies of this notice are being served on each person 
designated as a receiving representative of the Settling Parties to 
the agreement.

    Respectfully submitted,

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[Authorized Representative]
[Name, title, company or other entity, business address, telephone 
and email]

Attachment(s)

UNITED STATES OF AMERICA BEFORE THE FEDERAL ENERGY REGULATORY 
COMMISSION

Energy Transfer Partners, L.P.
Energy Transfer Company
ETC Marketing, Ltd.
Houston Pipeline Company
Docket No. IN06-3-003

COUNTY OF--------------------------------------------------------------

STATE OF---------------------------------------------------------------

Declaration of [Authorized Representative]

    I, [Authorized Representative], declare under penalty of perjury 
that I am an authorized representative of [company or other entity], 
its affiliates and related legal entities, with the authority to 
bind [company or other entity], its affiliates and related legal 
entities. Under penalty of perjury, the foregoing Declaration of 
Final Opt-In Fund Participant and Waiver and Release of Claims is 
true, correct, and complete to the best of my information, 
knowledge, and belief.

    Executed on this -- day of ---- 2010.

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[Authorized Representative]
[Name, title, company or other entity]

Subscribed and Sworn to before me
This -- day of ---- 2010.

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Notary Public
My Commission Expires:
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[FR Doc. E9-23145 Filed 9-24-09; 8:45 am]
BILLING CODE 6717-01-P


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