FERC Annual Enforcement Update

FERC Annual Enforcement Update On November 16, 2017, the Federal Energy Regulatory Commission (“FERC” or the “Commission”) released the Office of Enforcement’s (“OE”) annual report on enforcement activities (“ Annual Report ”) for fiscal year 2017 (“FY 2017”). Although the report, which covers activities from October 1, 2016 through September 30, 2017, merely reflects the activities and views of enforcement staff and is not necessarily representative of the views of the Commission or any Commissioner, the Annual Report can provide useful insights into compliance issues faced by market...

LIBOR: The End of The World As We Know It (And I Feel Fine?)

A few months ago, the head of the UK’s Financial Conduct Authority announced that it will stop requiring the reference banks to submit sterling quotes for LIBOR, the interbank lending rate, by the end of 2021. The acronym refers to the London-based unsecured wholesale market rates for jumbo deposits between major banks that are denominated in certain designated currencies. LIBOR is the most commonly used floating interest rate at which banks lend to each other, and is incorporated in several trillions of dollars of U.S. commercial loan products, including commercial mortgages, guaranties,...
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Barclays Market Manipulation Case Settles for $105 Million, What We Learned and What’s Next?

After more than four years of litigation in federal district court, the Federal Energy Regulatory Commission (“FERC” or the “Commission”) yesterday issued an order approving a $105 million settlement resolving allegations that Barclays Bank PLC and certain of its traders (“Barclays”) participated in a scheme to manipulate western energy markets. The settlement, which reflects a significant reduction from the penalty sought by FERC, comes on the heels of the federal court granting one of the four individual defendant’s Motion for Judgment on the Pleadings based on the action being time-barred...

New Default 40-Year Hydro License Term

With more than 300 projects anticipated to undergo relicensing over the next 8 years, the Federal Energy Regulatory Commission (“FERC”) issued a new policy statement on October 19, 2017 establishing a 40-year default license term for Federal Power Act (“FPA”) hydroelectric licenses for projects located at non-federal dams. [1] Since the license term determines the period over which an investor is able to recover investment in project facilities, its length is a major factor in any investment decision with respect to a new or existing project. FERC’s exercise of discretion with respect to...

The Mineral Revolution: How The Recent Influx of Capital is Changing Deal Structures and Opportunities for Investment

Over the past twelve months, we have witnessed a rapid evolution in the way that E&P industry participants acquire and own minerals. While the perpetual nature and non-cost bearing aspects of mineral ownership have long aided in maintaining a floor value in the asset class, an influx of money, technical and financial expertise has increased industry participants’ understanding of the value of minerals and has resulted in minerals commanding renewed focus from investors. This has resulted in a complete reorganization of the minerals market and created opportunities for public and private...

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