[Federal Register Volume 80, Number 181 (Friday, September 18, 2015)]
[Page 56454]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-23429]



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 

    \1\ Enforcement of Statutes, Regulations, and Orders, 129 FERC ] 
61,247 (2009), order on reh'g, 134 FERC ] 61,054 (2011).

    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 

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