80_FR_56635 80 FR 56454 - Staff Notice of Alleged Violations

80 FR 56454 - Staff Notice of Alleged Violations

DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission

Federal Register Volume 80, Issue 181 (September 18, 2015)

Page Range56454-56454
FR Document2015-23429

Federal Register, Volume 80 Issue 181 (Friday, September 18, 2015)
[Federal Register Volume 80, Number 181 (Friday, September 18, 2015)]
[Notices]
[Page 56454]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-23429]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission


Staff Notice of Alleged Violations

    Take notice \1\ that in a nonpublic investigation pursuant to 18 
CFR part 1b, the staff of the Office of Enforcement of the Federal 
Energy Regulatory Commission has preliminarily determined that 
Coaltrain Energy LP; its co-owners Peter Jones and Shawn Sheehan; 
traders Robert Jones, Jeff Miller, and Jack Wells; and analyst Adam 
Hughes violated the Commission's Anti-Manipulation Rule, 18 CFR 1c.2 
(2015), by devising and executing a scheme involving manipulative Up-To 
Congestion trading in PJM Regional Transmission Organization between 
June and September 2010. The Office of Enforcement has also 
preliminarily determined that Coaltrain violated 18 CFR 35.41(b) (2015) 
by making false statements and omitting material information during the 
investigation.
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    \1\ Enforcement of Statutes, Regulations, and Orders, 129 FERC ] 
61,247 (2009), order on reh'g, 134 FERC ] 61,054 (2011).
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    During the period of interest, Peter Jones and Shawn Sheehan were 
the principal owners of Coaltrain, and they along with Jeff Miller, 
Robert Jones, Jack Wells, and Adam Hughes devised and implemented the 
relevant trades in PJM. Staff alleges that the individuals (on behalf 
of Coaltrain) planned and executed Up-To Congestion transactions in PJM 
that were designed to falsely appear to be spread trades but that were 
in fact a vehicle to collect certain payments (called ``Marginal Loss 
Surplus Allocation,'' or MLSA) from PJM. Staff alleges that through 
these trades, Coaltrain sought not to profit from changes in price 
spreads but rather to profit by clearing large volumes of Up-To 
Congestion transactions with the goal of collecting MLSA.
    Staff further alleges that during the investigation, Peter Jones, 
Shawn Sheehan, and their agents (on behalf of Coaltrain) made false 
statements and omitted material information in responding to deposition 
questions and data requests.
    This Notice does not confer a right on third parties to intervene 
in the investigation or any other right with respect to the 
investigation.

    Dated: September 11, 2015.
Kimberly D. Bose,
 Secretary.
[FR Doc. 2015-23429 Filed 9-17-15; 8:45 am]
BILLING CODE 6717-01-P



                                              56454                       Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Notices

                                              easy method for submitting brief, text-                 notification of these filings, document               responding to deposition questions and
                                              only comments on a project;                             summaries, and direct links to the                    data requests.
                                                 (2) You can also file your comments                  documents. Go to www.ferc.gov/docs-                     This Notice does not confer a right on
                                              electronically using the eFiling feature                filing/esubscription.asp.                             third parties to intervene in the
                                              on the Commission’s Web site                              Dated: September 14, 2015.                          investigation or any other right with
                                              (www.ferc.gov) under the link to                                                                              respect to the investigation.
                                                                                                      Kimberly D. Bose,
                                              Documents and Filings. With eFiling,
                                                                                                      Secretary.                                              Dated: September 11, 2015.
                                              you can provide comments in a variety
                                              of formats by attaching them as a file                  [FR Doc. 2015–23426 Filed 9–17–15; 8:45 am]           Kimberly D. Bose,
                                              with your submission. New eFiling                       BILLING CODE 6717–01–P                                Secretary.
                                              users must first create an account by                                                                         [FR Doc. 2015–23429 Filed 9–17–15; 8:45 am]
                                              clicking on ‘‘eRegister.’’ You must select                                                                    BILLING CODE 6717–01–P
                                              the type of filing you are making. If you               DEPARTMENT OF ENERGY
                                              are filing a comment on a particular
                                                                                                      Federal Energy Regulatory                             DEPARTMENT OF ENERGY
                                              project, please select ‘‘Comment on a
                                              Filing’’; or                                            Commission
                                                 (3) You can file a paper copy of your                                                                      Federal Energy Regulatory
                                                                                                      Staff Notice of Alleged Violations                    Commission
                                              comments by mailing them to the
                                              following address: Kimberly D. Bose,                       Take notice 1 that in a nonpublic
                                              Secretary, Federal Energy Regulatory                    investigation pursuant to 18 CFR part                 [Docket No. CP15–14–001]
                                              Commission, 888 First Street NE., Room                  1b, the staff of the Office of Enforcement
                                              1A, Washington, DC 20426.                               of the Federal Energy Regulatory                      Texas Gas Transmission, LLC; Notice
                                                 Any person seeking to become a party                 Commission has preliminarily                          of Availability of the Environmental
                                              to the proceeding must file a motion to                 determined that Coaltrain Energy LP; its              Assessment for the Proposed
                                              intervene pursuant to Rule 214 of the                   co-owners Peter Jones and Shawn                       Southern Indiana Market Lateral
                                              Commission’s Rules of Practice and                      Sheehan; traders Robert Jones, Jeff                   Project
                                              Procedures (18 CFR 385.214).1 Only                      Miller, and Jack Wells; and analyst
                                              intervenors have the right to seek                      Adam Hughes violated the                                 The staff of the Federal Energy
                                              rehearing of the Commission’s decision.                 Commission’s Anti-Manipulation Rule,                  Regulatory Commission (FERC or
                                              The Commission grants affected                          18 CFR 1c.2 (2015), by devising and                   Commission) has prepared an
                                              landowners and others with                              executing a scheme involving                          environmental assessment (EA) for the
                                              environmental concerns intervenor                       manipulative Up-To Congestion trading                 Southern Indiana Market Lateral Project,
                                              status upon showing good cause by                       in PJM Regional Transmission                          proposed by Texas Gas Transmission,
                                              stating that they have a clear and direct               Organization between June and                         LLC (Texas Gas) in the above-referenced
                                              interest in this proceeding which no                    September 2010. The Office of                         docket. Texas Gas requests
                                              other party can adequately represent.                   Enforcement has also preliminarily                    authorization to deliver approximately
                                              Simply filing environmental comments                    determined that Coaltrain violated 18                 53.5 million standard cubic feet per day
                                              will not give you intervenor status, but                CFR 35.41(b) (2015) by making false                   of natural gas from its existing Robards
                                              you do not need intervenor status to                    statements and omitting material                      Junction facilities in Henderson County,
                                              have your comments considered.                          information during the investigation.                 Kentucky to one of Texas Gas’
                                                 Additional information about the                        During the period of interest, Peter               customers in Posey County, Indiana.
                                              project is available from the                           Jones and Shawn Sheehan were the                         The EA assesses the potential
                                              Commission’s Office of External Affairs,                principal owners of Coaltrain, and they               environmental effects of the
                                              at (866) 208–FERC, or on the FERC Web                   along with Jeff Miller, Robert Jones, Jack            construction and operation of the
                                              site (www.ferc.gov) using the eLibrary                  Wells, and Adam Hughes devised and                    Southern Indiana Market Lateral Project
                                              link. Click on the eLibrary link, click on              implemented the relevant trades in PJM.               in accordance with the requirements of
                                              ‘‘General Search,’’ and enter the docket                Staff alleges that the individuals (on                the National Environmental Policy Act
                                              number excluding the last three digits in               behalf of Coaltrain) planned and                      (NEPA). The FERC staff concludes that
                                              the Docket Number field (i.e., CP15–95).                executed Up-To Congestion transactions                approval of the proposed project, with
                                              Be sure you have selected an                            in PJM that were designed to falsely                  appropriate mitigating measures, would
                                              appropriate date range. For assistance,                 appear to be spread trades but that were              not constitute a major federal action
                                              please contact FERC Online Support at                   in fact a vehicle to collect certain                  significantly affecting the quality of the
                                              FercOnlineSupport@ferc.gov or toll free                 payments (called ‘‘Marginal Loss                      human environment.
                                              at (866) 208–3676, or for TTY, contact                  Surplus Allocation,’’ or MLSA) from                      The U.S. Army Corps of Engineers—
                                              (202) 502–8659. The eLibrary link also                  PJM. Staff alleges that through these                 Louisville District participated as a
                                              provides access to the texts of formal                  trades, Coaltrain sought not to profit                cooperating agency in the preparation of
                                              documents issued by the Commission,                     from changes in price spreads but rather              the EA. Cooperating agencies have
                                              such as orders, notices, and                            to profit by clearing large volumes of                jurisdiction by law or special expertise
                                              rulemakings.                                            Up-To Congestion transactions with the                with respect to resources potentially
                                                 In addition, the Commission offers a                 goal of collecting MLSA.                              affected by a proposal and participate in
                                              free service called eSubscription that                     Staff further alleges that during the              the NEPA analysis.
                                              allows you to keep track of all formal                  investigation, Peter Jones, Shawn                        The proposed Southern Indiana
tkelley on DSK3SPTVN1PROD with NOTICES




                                              issuances and submittals in specific                    Sheehan, and their agents (on behalf of               Market Lateral Project includes the
                                              dockets. This can reduce the amount of                  Coaltrain) made false statements and                  following facilities:
                                              time you spend researching proceedings                  omitted material information in                          • About 30.6 miles of 10-inch-
                                              by automatically providing you with                                                                           diameter natural gas pipeline lateral;
                                                                                                        1 Enforcement of Statutes, Regulations, and
                                                1 See the previous discussion on the methods for      Orders, 129 FERC ¶ 61,247 (2009), order on reh’g,
                                                                                                                                                               • one new meter and regulator
                                              filing comments.                                        134 FERC ¶ 61,054 (2011).                             station;


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Document Created: 2015-12-15 09:28:00
Document Modified: 2015-12-15 09:28:00
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation80 FR 56454 

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