A Dallas-based energy company has agreed to pay $30 million to settle allegations that it manipulated natural gas prices, federal regulators said Monday.

Energy Transfer Partners LP was accused of manipulating the price of natural gas delivered to the Houston Ship Channel, one of the principal gateways for gas destined for markets in Texas, the Midwest and Northeast, from 2003 through 2005, according to the Federal Energy Regulatory Commission.

The company will pay a $5 million civil penalty and establish a $25 million fund to settle claims that it profited unfairly during that period.

FERC said the settlement is the largest related to an enforcement action since Congress gave it enhanced enforcement authority under the Energy Policy Act of 2005.

Energy Transfer Partners said it was preparing a statement in response to the announcement by FERC.

The settlement was far below what the company said FERC had been seeking. According to a filing with the Securities and Exchange Commission in August, Energy Transfer Partners said FERC was asking the company to give up $69.9 million in profit, plus interest, and $82 million in civil penalties.

Energy Transfer Partners previously agreed to pay $10 million to settle similar allegations made by the Commodity Futures Trading Commission.

Shares of Energy Transfer Partners rose 34 cents to $43.16 in trading Monday. The shares have traded between $22.40 and $47.44 over the past year.

It has pipeline operations in Arizona, Colorado, Louisiana, New Mexico, and Utah, and owns the largest intrastate pipeline system in Texas. SUBHEAD: Regulators say it's settling allegations of price manipulation.

Originally published by MARK WILLIAMS Associated Press.

(c) 2009 Tulsa World. Provided by ProQuest LLC. All rights Reserved.

A service of YellowBrix, Inc.