On November 17, 2015, the Federal Energy Regulatory Commission (“Commission”) terminated the proceeding in which it was considering a proposed reporting requirement that would have required quarterly reporting of every natural gas transaction within the Commission’s Natural Gas Act jurisdiction that entails physical delivery for the next day or for the next month. The Commission decided to terminate based on its determination that the proposed reporting requirement is not necessary at this time.
The proceeding was commenced on November 15, 2012, when the Commission issued the Enhanced Natural Gas Market Transparency Notice of Inquiry (“NOI”). In the NOI, the Commission noted that this proposed reporting requirement would enhance “its ability to identify the potential for manipulation in the natural gas markets, to examine more efficiently the manipulative behavior, and to assess the effects of manipulation.” In response to the NOI, the Commission received thirty-four sets of comments that raised various concerns related to the proposed reporting requirement. After receiving these comments, the Commission’s Office of Enforcement sent data requests to certain natural gas marketers related to their natural gas marketing activities to assess better whether the reporting requirement described in the NOI would enhance natural gas transparency. Those marketers submitted non-public responses that further informed the Commission’s decision to terminate the proceeding.
The Commission’s order is available here.