BP Plc. (NYSE:BP) achieved a legal victory recently as the U.S. Federal Energy Regulatory Commission (FERC) reduced the civil penalty for the company’s alleged manipulation of natural gas prices in 2008. The revised penalty requires BP to now pay $10.75 million, which is significantly lower than the $24.4 million fine imposed by FERC in December 2020.
The reduced penalty amount follows BP’s appeal of FERC’s judgment to the U.S. Court of Appeals for the Fifth Circuit. The court subsequently remanded the case back to FERC, requesting that they reevaluate the civil penalty.
Following the review, FERC stated that BP has the option to seek reimbursement for the excess penalty paid by filing a lawsuit in the U.S. Court of Federal Claims. However, FERC has determined that the disgorgement of unjust profits, totaling $250,295 that BP had previously paid in January 2021, will not be refunded to the company.
Furthermore, the regulator said that with this final judgment, the oil major resolved accusations that its traders manipulated the price of natural gas between mid-September and November 30, 2008. The traders were said to have taken advantage of the disruption caused by Hurricane Ike, which had hit the Houston area at the time.
Is BP a Good Stock to Buy Right Now?
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