Energy and Commodities Trading
Our energy and commodities trading lawyers advise in all facets of trading, helping clients structure transactions to obtain commercially sound and credit-efficient trading. The businesses who turn to us for advice transact energy and commodities on a global scale, trading oil and gas, crude products, electric power, energy products and other commodities around the world. Whether trading in physical or financial products, our global multilingual team is well-versed in the many legal and regulatory issues confronting today’s trading operations. We have particular experience in helping clients start, build, acquire and divest trading operations. We have also helped trading businesses structure and implement sophisticated trading transactions, keeping in mind the fast-changing international regulations that apply to trading.
Recent representative matters include advising:
- Subsidiaries of BAC with respect to: Federal Energy Regulatory Commission (FERC) and Public Utilities Commission of Texas (PUCT) regulations applicable to power marketers engaged in wholesale electric power transactions and participation in the U.S.-organized electricity markets; FERC and state regulatory compliance and approval requirements associated with investments in distressed electric generation assets, as well as those related to tax equity investments in renewable energy projects. The total at stake for these matters could exceed US$500 million.
- An energy trading company client in an ongoing nonpublic FERC Office of Enforcement investigation involving allegations of market manipulation and false communications under the Federal Power Act and FERC’s regulations. The investigation stems from trading activity in financial electricity products within an organized wholesale power market.
- EDF Trading North America, LLC subsidiary EDF Energy Services, LLC in obtaining market-based rate authority from FERC, which enabled its continued participation in the electricity markets throughout the United States. The team also participates in the ongoing regulatory counsel related to the retention of the market-based rate authority.
- ETC ProLiance concerning FERC’s promulgation of competitive solicitation processes for transmission developers. Sidley has assisted ETC in evaluating the processes, as well as the submission of proposals, for the CAISO, NYISO and PJM. ETC has numerous projects and/or proposals, totaling in excess of US$500 million.
- Marathon Pipe Line LLC in its petition for a declaratory order seeking FERC approval for rate and capacity allocation proposals. The project involves an expansion of its pipeline system from the Patoka, Illinois crude oil hub to pipeline interconnections and refineries in Ohio and Michigan. This will provide enhanced access for Ohio and Michigan refiners to the growing crude oil supply available at Patoka, including Bakken, Canadian, U.S. Mid-Continent and U.S. Gulf Coast crude oil.
- Represented Morgan Stanley Capital Group Inc. (NYSE: MS) in connection with the purchase of a portfolio of natural gas supply and transportation agreements from WPX.
- Represented Morgan Stanley Capital Group Inc. in connection with a structured off-take of environmental products and energy from a wind farm in Oklahoma that was on-sold to a regulated utility in Florida using an innovative structure that won the 2015 Platts Global Energy Awards “Financial Deal of the Year.”
About the team
Members of our team have an uncommon insider’s perspective on enforcement. Two of our lawyers are former enforcement lawyers at the United States Commodity Futures Trading Commission (CFTC) and one was the director of that agency’s enforcement division. All have decades of energy-related experience.
Our lawyers have been acknowledged in leading industry publications, including Chambers USA, The Legal 500, Houston Business Journal and Texas Lawyers.