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Coal Weight
San Francisco, CA: (Nov-29-07) The Department of Justice (DOJ) brought charges against Kinder Morgan Energy Partners, Kinder Morgan Operating, and Kinder Morgan Operating, alleging that the companies engaged in unauthorized sales of customers' coal. Sources stated that the Tennessee Valley Authority (TVA) contracted with Kinder Morgan to handle coal at Kinder Morgan's Cora and Grand Rivers terminals. The DOJ stated that TVA ordered large quantities of coal, which was shipped to Cora and/or Grand Rivers where it was offloaded, stored and eventually loaded onto barges for delivery to the TVA. Certified scales weighed coal coming to the terminals when it was loaded onto the train, however, at the Cora terminal, outgoing coal was weighed by barge draft. The barge draft method usually weighed 2% to 3% less than the certified scales. Kinder Morgan was accused of exploiting this weighing differential to show that it shipped out the same amount of coal as it had received.
As part of a settlement reached, the defendants agreed to pay a $25 million civil penalty to the government. In addition, Kinder Morgan will reimburse other private customers in the amount of $5.2 million. [CNN NEWS: COAL SALE]
Published on Nov-29-07
As part of a settlement reached, the defendants agreed to pay a $25 million civil penalty to the government. In addition, Kinder Morgan will reimburse other private customers in the amount of $5.2 million. [
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