On 07/03/2012 STATE OF CA, COUNTY OF LA, REGENTS OF THE UNIV OF CA filed a Property - Other Property Fraud lawsuit against BP AMERICA PRODUCTION COMPANY, Defts 170 6. This case was filed in San Francisco County Superior Courts, Civic Center Courthouse located in San Francisco, California. The case status is Not Classified By Court.
*******2063
07/03/2012
Not Classified By Court
San Francisco County Superior Courts
Civic Center Courthouse
San Francisco, California
UNDER SEAL
BP ENERGY COMPANY A DELAWARE CORPORATION
REGENTS OF THE UNIVERSITY OF CALIFORNIA
COUNTY OF LOS ANGELES
ROES 1-200
COUNTY OF ORANGE
BOARD OF TRUSTEED OF THE CALIFORNIA STATE UNIVERSITY
SCHROEN, CHRISTOPHER J
[UNDER SEAL]
BP ENERGY COMPANY A DELAWARE CORPORATION
BP CORPORATION NORTH AMERICA, INC. AN INDIANA CORPORATION
BP PRODUCTS NORTH AMERICA INC.
BP PLC A UK CORPORATION
DOES 1 THROUGH 20, INCLUSIVE
BP PRODUCTS NORTH AMERICA, INC. A MARYLAND CORPORATION
DOES 1-20
THE PEOPLE OF THE STATE OF CALIFORNIA, EX REL. KAMALA D. HARRIS, CALIFORNIA ATTORNEY GENERAL
COMMERCE REFUSE TO ENERGY AUTHORITY
COUNTY OF LOS ANGELES
COUNTY OF ORANGE
CITY OF FRESNO
COUNTY OF RIVERSIDE
CITY OF CHICO
COMMERCE REFUSE TO ENERGY AUTHORITY
MCCARTHY, NIALL P
Attorney at COTCHETT, PITRE & MCCARTHY LLP
840 Malcolm Road, Suite 200
Burlingame, CA 94010
SUGARMAN, KENNETH J
Attorney at OFFICE OF THE CALIFORNIA ATTORNEY GENERAL
455 Golden Gate Ave., Ste 11000
San Francisco, CA 94102
SIMPTON, JEFFREY L
Attorney at KAMALA D. HARRIS, ATTORNEY GENERAL OF CALIFORNIA
1300 I Street, Suite 125, P.O. Box 944255
Sacramento, CA 94244-2550
BEVERLIN, WESLEY G.
Attorney at LEWIS BRISBOIS BISGAARD & SMITH
633 West 5Th Street, Sutie 4000
Los Angeles, CA 90071
STEIDLEY, JEFFREY W.
Attorney at STEIDLEY & KELLY, LLC
3000 Weslayan, Suite 350
Houston, TX 77027
LEEDS, REBECCA S.
Attorney at DEPUTY
333 W. Santa Ana Blvd., Suite 407
Santa Ana, CA 92701
VALENZUELA, JR., MANUEL A
648 Kenneth Hahn Hall Of Administration, 500 West Temple Street
Los Angeles, CA 90012-2713
COLEMAN, DERRICK F.
Attorney at COLEMAN FROST LLP
201 Nevada Street
El Segundo, CA 90245
CLEMENTS, OWEN JAMES
Attorney at DEPUTY CITY ATTORNEY
1390 Market St 7Th Fl
San Francisco, CA 94102-5408
KELLY, JAMES T.
Attorney at STEIDLEY & KELLY, LLC
3000 Weslayan, Suite 350
Houston, TX 77027
LAM, JENNY
Attorney at OFFICE OF THE COUNTY COUNSEL
70 West Hedding Street, East Wing, Ninth Floor
San Francisco, CA 95110-1770
SHEA, KIRSTEN B
3960 Orange Street, Ste 500
Riverside, CA 92501
DILLON, ERIN E
Attorney at OFFICE OF THE CITY ATTORNEY
1200 Third Avenue, Suite 1100
San Diego, CA 92101-4100
CAMERENA, ERICA M
Attorney at FRESNO CITY ATTORNEYS OFFICE
2600 Fresno Street, Room 2031
Fresno, CA 93721-3602
ALVAREZ-GLASMAN, ARNOLD M.
Attorney at ALVAREZ-GLASMAN & COLVIN
13181 Crossroads Parkway,, North, Sute 400 West
City Of Industry, CA 91746
CAREY, TIMOTHY J.
Attorney at WINSTON & STRAWN LLP
35 W. Wacker Drive
Chicago, IL 60601-9703
COLLIAS, JOANNA
Attorney at WINSTON & STRAWN LLP
35 W. Hacker Drive
Chicago, IL 60601-9703
HAUSMAN, KENNETH GIBBS
Attorney at ARNOLD & PORTER LLP
Three Embarcadero Center, 10Th Fl
San Francisco, CA 94111-4024
BEVERLIN, WESLEY G.
Attorney at LEWIS BRISBOIS BISGAARD & SMITH
633 West 5Th Street, Sutie 4000
Los Angeles, CA 90071
PATE, WILLIAM C.
Attorney at STUTZ ARTIANO SHINOFF & HOLTZ A PROFESSIONAL CORPORATION
2488 Historic Decatur Road, Suite 200
San Diego, CA 92106
NOTICE OF ENTRY OF ORDER/NOTICE OF RULING FILED FILED BY PLAINTIFF STATE OF CALIFORNIA, COUNTY OF LOS ANGELES, REGENTS OF THE UNIVERSITY OF CALIFORNIA, AND BOARD OF TRUSTEES OF THE CALIFORNIA STATE UNIVERSITY, AND ROES 1-200, EX REL. CHRISTOPHER J. SCHROEN, AN INDIVIDUAL
SUMMONS ON COMPLAINT (TRANSACTION ID # 15004058), PROOF OF SERVICE ONLY, FILED BY PLAINTIFF STATE OF CALIFORNIA, COUNTY OF LOS ANGELES, REGENTS OF THE UNIVERSITY OF CALIFORNIA, AND BOARD OF TRUSTEES OF THE CALIFORNIA STATE UNIVERSITY, AND ROES 1-200, EX REL. CHRISTOPHER J. SCHROEN, AN INDIVIDUAL SERVED DEC-23-2014, PERSONAL SERVICE ON DEFENDANT BP AMERICA PRODUCTION COMPANY A DELAWARE CORPORATION
UNOPPOSED APPLICATION OF THE PEOPLE OF THE STATE OF CALIFORNIA FOR APPROVAL OF COMPLEX LITIGATION DESIGNATION (TRANSACTION ID # 56642993) FILED BY PLAINTIFF THE PEOPLE OF THE STATE OF CALIFORNIA
MOTION FOR PREMPTORY DISQUALIFICATION (TRANSACTION ID # 56821160) FILED BY DEFENDANT BP AMERICA PRODUCTION COMPANY A DELAWARE CORPORATION BP ENERGY COMPANY A DELAWARE CORPORATION BP CORPORATION NORTH AMERICA, INC. AN INDIANA CORPORATION BP PLC A UK CORPORATION BP PRODUCTIONS NORTH AMERICA, INC. A MARYLAND CORPORATION (Fee:7250.00)
ORDER GRANTING MOTION FOR PEREMPTORY CHALLENGE PURSUANT TO CCP SECTION 170.6; VACATING CASE MANAGEMENT CONFERENCE, REASSIGNING CASE FOR ALL PURPOSES; SETTING NEW CASE MANAGEMENT CONFERENCE [E-SERVICE TRANSACTION I.D: 56836839]
CITY OF CHICOS NOTICE OF ELECTION TO DECLINE INTERVENTION (TRANSACTION ID # 56979464) FILED BY INTERVENOR CITY OF CHICO
CITY OF FRESNOS NOTICE OF ELECTION TO DECLINE INTERVENTION (TRANSACTION ID # 57083712) FILED BY INTERVENOR CITY OF FRESNO
ORDER GRANTING APPLICATION TO APPEAR AS COUNSEL PRO HAC VICE FOR ATTORNEY JAMES T. KELLY FOR QUI TAM PLAINTIFF CHRISTOPHER J SCHROEN (TRANSACTION 57165648) FILED BY COUNSEL FOR PLAINTIFF STATE OF CALIFORNIA, COUNTY OF LOS ANGELES, REGENTS OF THE UNIVERSITY OF CALIFORNIA, AND BOARD OF TRUSTEES OF THE CALIFORNIA STATE UNIVERSITY, AND ROES 1-200, EX REL. CHRISTOPHER J. SCHROEN, AN INDIVIDUAL
PROOF OF SERVICE NOTICES OF PAYMENT OF PRO HAC VICE ANNUAL RENEWAL FEES FOR TIMOTHY J. CAREY AND JOANNA COLLIAS (TRANSACTION ID # 58556788) FILED BY DEFENDANT BP AMERICA PRODUCTION COMPANY A DELAWARE CORPORATION BP ENERGY COMPANY A DELAWARE CORPORATION BP CORPORATION NORTH AMERICA, INC. AN INDIANA CORPORATION
ORDER EXTENDING SEAL AND TIME TO INTERVENE (UNTIL SEPT. 4, 2014)
PROOF OF SERVICE (TRANSACTION ID # 56642993) FILED BY INTERVENOR THE PEOPLE OF THE STATE OF CALIFORNIA
DECLARATION OF E. CAMARENA RE EX PARTE APPLICATION (TRANSACTION ID # 56826803) FILED BY INTERVENOR CITY OF FRESNO
COMPLAINT IN INTERVENTION (TRANSACTION ID # 56940788) FILED BY INTERVENOR COUNTY SANITATION DISTRICT NO. 2 OF LOS ANGELES COUNTY AS TO DEFENDANT IN INTERVENTION BP AMERICA PRODUCTION COMPANY A DELAWARE CORPORATION BP ENERGY COMPANY A DELAWARE CORPORATION BP CORPORATION NORTH AMERICA, INC. AN INDIANA CORPORATION BP PRODUCTS NORTH AMERICA, INC. A MARYLAND CORPORATION BP PLC A UK CORPORATION ROES 1 THROUGH 20, INCLUSIVE
EXHIBIT A TO DECLARATION OF RICHIE MALONE IN SUPPORT OF DEFENDANTS DEMURRER, MOTION TO STRIKE AND MOTION TO DISMSS QUI TAM PLAINTIFFS FIRST AMENDED COMPLAINT AS SUPERSEDED AND FOR FORUM NON CONVENIENS (TRANSACTION ID # 57057003) FILED BY DEFENDANT BP AMERICA PRODUCTION COMPANY A DELAWARE CORPORATION BP ENERGY COMPANY A DELAWARE CORPORATION BP CORPORATION NORTH AMERICA, INC. AN INDIANA CORPORATION BP PLC A UK CORPORATION BP PRODUCTIONS NORTH AMERICA, INC. A MARYLAND CORPORATION
MOTION TO ADMIT COUNSEL PRO HAC VICE (TRANSACTION ID # 57094016) FILED BY PLAINTIFF STATE OF CALIFORNIA, COUNTY OF LOS ANGELES, REGENTS OF THE UNIVERSITY OF CALIFORNIA, AND BOARD OF TRUSTEES OF THE CALIFORNIA STATE UNIVERSITY, AND ROES 1-200, EX REL. CHRISTOPHER J. SCHROEN, AN INDIVIDUAL HEARING SET FOR MAY-06-2015 AT 09:00 AM IN DEPT 304 (Fee:500.00)
ORDER GRANTING APPLICATION TO APPEAR AS COUNSEL PRO HAC VICE FOR ATTORNEY JEFFREY W. STEIDLEY FOR QUI TAM PLAINTIFF CHRISTOPHER SCHROEN (TRANSACTION 57165648) FILED BY COUNSEL FOR PLAINTIFF STATE OF CALIFORNIA, COUNTY OF LOS ANGELES, REGENTS OF THE UNIVERSITY OF CALIFORNIA, AND BOARD OF TRUSTEES OF THE CALIFORNIA STATE UNIVERSITY, AND ROES 1-200, EX REL. CHRISTOPHER J. SCHROEN, AN INDIVIDUAL
MINUTES FOR JUN-08-2015 2:00 PM
JOINT CASE MANAGEMENT STATEMENT NO. 6 (TRANSACTION ID # 58412136) FILED BY PLAINTIFF THE PEOPLE OF THE STATE OF CALIFORNIA
PRO HAC VICE RENEWAL FEE PAID FOR ATTORNEY JAMES T. KELLY (Fee:500.00)
PRO HAC VICE RENEWAL FEE PAID FOR ATTORNEY JEFFREY W. STEIDLEY (Fee:500.00)
NOTICE OF CHANGE OF ADDRESS (TRANSACTION ID # 58651470) FILED BY ATTORNEY COLEMAN, DERRICK F.
PRO HAC VICE RENEWAL CALENDAR OF MAR-23-2016 IS OFF CALENDAR AS TO ATTORNEY, JOANNA COLLIAS. PRO HAC VICE FEES WERE PAID ON 2-10-16.
ISSUING COMMISSION TO TAKE DEPOSITION OUT OF STATE UNDER CCP 2026 FILED BY PLAINTIFF STATE OF CALIFORNIA, COUNTY OF LOS ANGELES, REGENTS OF THE UNIVERSITY OF CALIFORNIA, AND BOARD OF TRUSTEES OF THE CALIFORNIA STATE UNIVERSITY, AND ROES 1-200, EX REL. CHRISTOPHER J. SCHROEN, AN INDIVIDUAL (Fee:30.00)
ISSUING COMMISSION TO TAKE DEPOSITION OUT OF STATE UNDER CCP 2026 FILED BY PLAINTIFF STATE OF CALIFORNIA, COUNTY OF LOS ANGELES, REGENTS OF THE UNIVERSITY OF CALIFORNIA, AND BOARD OF TRUSTEES OF THE CALIFORNIA STATE UNIVERSITY, AND ROES 1-200, EX REL. CHRISTOPHER J. SCHROEN, AN INDIVIDUAL (Fee:30.00)
PROOF OF SERVICE NOTICES OF PAYMENT OF PRO HAC VICE ANNUAL RENEWAL FEES FOR TIMOTHY J. CAREY AND JOANNA COLLIAS (TRANSACTION ID # 58556788) FILED BY DEFENDANT BP AMERICA PRODUCTION COMPANY A DELAWARE CORPORATION BP ENERGY COMPANY A DELAWARE CORPORATION BP CORPORATION NORTH AMERICA, INC. AN INDIANA CORPORATION
NOTICE SENT TO ATTORNEY JOANNA COLLIAS TO PAY PRO HAC VICE RENEWAL FEE BY MAR-23-2016
FEB-10-2016 PRO HAC VICE STATUS CALENDAR AS TO ATTORNEY TIMOTHY J. CAREY - OFF CALENDAR, RENEWAL FEES PAID ON FEB-10-2016
PRO HAC VICE RENEWAL FEE PAID FOR ATTORNEY JOANNA COLLIAS (TRANSACTION ID # 58554551) (Fee:500.00)
EX PARTE APPLICATION FOR ORDER FOR AN EXTENSION OF TIME TO INTERVENE AND PARTIAL LIFTING OF THE SEAL FILED BY PLAINTIFF STATE OF CALIFORNIA, COUNTY OF LOS ANGELES, REGENTS OF THE UNIVERSITY OF CALIFORNIA, AND BOARD OF TRUSTEES OF THE CALIFORNIA STATE UNIVERSITY, AND ROES 1-200, EX REL. CHRISTOPHER J. SCHROEN, AN INDIVIDUAL (Fee:EXEMPT)
CASE MANAGEMENT CONFERENCE OF DEC-05-2012 CONTINUED TO APR-03-2013 AT 10:30 AM IN DEPARTMENT 610. NOTICE SENT BY COURT.
CASE MANAGEMENT STATEMENT FILED BY PLAINTIFF STATE OF CALIFORNIA, COUNTY OF LOS ANGELES, REGENTS OF THE UNIVERSITY OF CALIFORNIA, AND BOARD OF TRUSTEES OF THE CALIFORNIA STATE UNIVERSITY, AND ROES 1-200, EX REL. CHRISTOPHER J. SCHROEN, AN INDIVIDUAL JURY DEMANDED, ESTIMATED TIME FOR TRIAL: 20.0 DAYS
STATEMENT OF THE ATTORNEY GENERAL'S OFFICE RE: DEC 05, 2012 CASE MANAGEMENT CONFERENCE
JURY FEES DEPOSITED BY PLAINTIFF STATE OF CALIFORNIA, COUNTY OF LOS ANGELES, REGENTS OF THE UNIVERSITY OF CALIFORNIA, AND BOARD OF TRUSTEES OF THE CALIFORNIA STATE UNIVERSITY, AND ROES 1-200, EX REL. CHRISTOPHER J. SCHROEN, AN INDIVIDUAL (Fee:150.00)
DECLARATION OF (IN CAMERA) DEPUTY ATTORNEY GENERAL JULIA A. CLAYTON IN SUPPORT OF APPLICATION FOR AND EXTENSION OF THE SEAL AND TIME TO INTERVENE (SEALED DOCUMENT) FILED BY PLAINTIFF STATE OF CALIFORNIA, COUNTY OF LOS ANGELES, REGENTS OF THE UNIVERSITY OF CALIFORNIA, AND BOARD OF TRUSTEES OF THE CALIFORNIA STATE UNIVERSITY, AND ROES 1-200, EX REL. CHRISTOPHER J. SCHROEN, AN INDIVIDUAL
EX PARTE APPLICATION FOR ORDER FOR EXTENSION OF THE SEAL AND TIME TO INTERVENE; MEMO OF P & A FILED BY PLAINTIFF STATE OF CALIFORNIA, COUNTY OF LOS ANGELES, REGENTS OF THE UNIVERSITY OF CALIFORNIA, AND BOARD OF TRUSTEES OF THE CALIFORNIA STATE UNIVERSITY, AND ROES 1-200, EX REL. CHRISTOPHER J. SCHROEN, AN INDIVIDUAL (Fee:EXEMPT)
ORDER EXTENDING THE SEAL AND TIME TO INTERVENE (TO MAR-4-2013)
NOTICE TO PLAINTIFF
FRAUD, COMPLAINT FILED BY PLAINTIFF STATE OF CALIFORNIA, COUNTY OF LOS ANGELES, REGENTS OF THE UNIVERSITY OF CALIFORNIA, AND BOARD OF TRUSTEES OF THE CALIFORNIA STATE UNIVERSITY, AND ROES 1-200, EX REL. CHRISTOPHER J. SCHROEN, AN INDIVIDUAL AS TO DEFENDANT BP AMERICA PRODUCTION COMPANY A DELAWARE CORPORATION BP ENERGY COMPANY A DELAWARE CORPORATION BP CORPORATION NORTH AMERICA, INC. AN INDIANA CORPORATION BP PRODUCTS NORTH AMERICA, INC. A MARYLAND CORPORATION BP PLC A UK CORPORATION DOES 1-20 SUMMONS ISSUED, JUDICIAL COUNCIL CIVIL CASE COVER SHEET FILED CASE MANAGEMENT CONFERENCE SCHEDULED FOR DEC-05-2012 PROOF OF SERVICE DUE ON SEP-04-2012 CASE MANAGEMENT STATEMENT DUE ON NOV-20-2012 COMPLEX LITIGATION ASSIGNMENT REQUESTED BY FILING PARTIES; FEE INCLUDED IN FILING FEE (Fee:410.00)
KAMALA D. HARRIS Attorney General of California JACQUELINE S. DALE (SBN 170800)
Supervising Deputy Attorney General ELECTRONICALLY KENNETH J. SUGARMAN (SBN 195059) HEATHER B. HOESTEREY (SBN 201254) Sup ilc OI;TEC?M,B Deputy Attorneys General County of San Francisco 455 Golden Gate Avenue, Suite 11000 San Francisco, CA 94102-7004 %|59{k2°¥4|zgg'u?t Telephone: (415) 703-5958 BY:ALISON AGBAY Fax: (415) 703-5480 Deputy Clerk
E-mail: Kenneth.Sugarman(@doj.ca.gov Attorneys for the People of the State of California
STATE OF CALIFORNIA ex rel. CHRISTOPHER J. SCHROEN, et al., Case No. CGC-12-522063
Plaintiffs, V.
BP AMERICA PRODUCTION COMPANY, et al.,
Defendants.
CALIFORNIA, Plaintiff-Intervenor, V.
BP AMERICA PRODUCTION COMPANY, a Delaware corporation; BP ENERGY COMPANY, a Delaware corporation; BP CORPORATION NORTH AMERICA, INC,, Inc., an Indiana corporation; and DOES 1 20,
Defendants.
1 First Amended Complaint in Intervention of the People of the State of California (CGC-12-522063)
1 First Amended Complaint in Intervention of the People of the State of California (CGC-12-522063) Plaintiff, the People of the State of California, based on information and belief, alleges for its complaint as follows:
Plaintiff, the People of the State of California, based on information and belief, alleges for its complaint as follows:
1. This action arises from Defendants’ violations of the False Claims Act from approximately April 2003 to the date of trial.
2. Defendants have overcharged the State of California and numerous California political subdivisions' millions of dollars for natural gas purchases under three successive contracts with the Department of General Services (“DGS”), an executive department in the California Government Operations Agency.
3. The contracts entered into with DGS provide for the purchase of gas under two different pricing structures: (1) the market (or index) price as of the beginning of the delivery month; or (2) an alternative price, agreed upon by the parties ahead of time. The latter type of purchases are referred to herein as “Special Pricing” purchases.
4. The contracts expressly prohibit Defendants from quoting a price for a Special Pricing purchase “that exceeds the Market Price plus $ 0.15 per MMBtu.””
5. Notwithstanding this provision, Defendants continually and systematically quoted the state prices for Special Pricing purchases that exceeded the market price by more than $0.15 per MMBHtu, thereby inducing the state to enter into hundreds of purchase agreements for overpriced gas.
6. Defendants’ internal communications report average state margins on the order of $0.25 per MMBtu or higher, or at least $0.10 per MMBtu more than the state was supposed to pay. In July 2009, Defendants reported that, for Defendants’ relevant business region, the state accounted for 35 percent of the customer profit margin, even though the state comprised only
eight percent of their business by volume. “Squeezing gold out of that goose” is how one of
' The State of California and the relevant California political subdivisions may be referred to herein collectively as the “state.” A Btu is a standard unit of measurement denoting the amount of heat energy in fuels. A Btu 1s the amount of heat required to increase the temperature of a pound of water by one degree Fahrenheit. An MMBtu stands for one million Btu’s.
2 First Amended Complaint in Intervention of the People of the State of California (CGC-12-522063)
2 First Amended Complaint in Intervention of the People of the State of California (CGC-12-522063) Defendants’ employees closest to the DGS account described transacting with the state for Special Pricing volumes.
Defendants’ employees closest to the DGS account described transacting with the state for Special Pricing volumes.
7. Through this action, the People seek to recover treble damages and penalties under the False Claims Act, restitution and penalties under the Unfair Competition Law, prejudgment interest, the costs of this action, and such other relief as the Court deems proper.
8. Plaintiff is the People of the State of California (“Plaintiff, or the “People™).
9. Pursuant to Government Code section 12652, the People, by and through the Attorney General, may elect to intervene and proceed with an action brought by a private person (the “qui tam plaintiff”) under the False Claims Act, Government Code section 12652, subdivision (c)(1), for violations of the Act (a “qui tam action”), and seek damages and penalties as provided in section 12651, subdivision (a). Pursuant to section 12652, subdivision (¢)(1), where the People proceed with the action, the People shall have the primary responsibility for prosecuting the action.
10. On July 2, 2012, Christopher J. Schroen, the qui tam plaintiff, brought this action as a qui tam action.
11. On November 4, 2014, pursuant to Government Code section 12652, subdivision (©)(8)(D)(1), the People gave notice that they intend to intervene and proceed with the action.
12. Pursuant to Business and Professions Code sections 17204 and 17206, the Attorney General 1s authorized to bring a civil action in the name of the People of the State of California for the assessment and recovery of restitution and civil penalties for each violation of the Unfair Competition Law, Business and Professions Code sections 17200 to 17210.
13. Defendant BP America Production Company is a Delaware Corporation, registered with the California Secretary of State, and authorized to do business and doing business in California.
19. The Court has subject matter jurisdiction pursuant to Article 6, section 10 of the California Constitution.
I. THEDGS NATURAL GAS SERVICES PROGRAM
24. At all times relevant to this complaint, DGS has operated a program called the Natural Gas Services (“NGS”) program.
25. The NGS program procures natural gas supplies and related services for California state agencies and California political subdivisions that elect to participate in the program. Participants during the period covered by this complaint include, without limitation, DGS itself, several state executive agencies; California State University (“CSU”), including CSU’s San Francisco campus, SFSU; the University of California (“UC”), including UC campuses in San Francisco; and the County of Los Angeles.
il. DEFENDANTS’ CONTRACTUAL OBLIGATIONS
26. DGS and BPE entered into three successive master contracts under which BPE has been, with limited exceptions, the “full requirements” supplier for the NGS program. Under the contracts, BPE has obligations to procure natural gas required by program customers and to provide related services, including coordinating the pipeline nominations and transportation required for the delivery of natural gas to customers’ gas meters, and monitoring customers’ actual usage.
27. Collectively, the contracts provide for gas supplies flowing from April 1, 2003 through June 2016, though certain Special Pricing purchases transacted under the third contract provide for gas to be supplied through June 2017.
A. The Contracts Provide for Default Pricing and Special Pricing Purchases
28. The DGS contracts include two pricing structures for gas to be supplied under the contracts. The first pricing structure is “Default Pricing.”
29. The Default Pricing structure is a published index price—i.e., a price to be determined as of the delivery month by reference to a specified, published gas price index for that month. Default Pricing purchases are not at issue in this action.