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Argued November 13, 2009

Before: ROGERS and GRIFFITH, Circuit Judges, and SILBERMAN, Senior Circuit Judge.

Following the remand in BP West Coast Products, L.L.C. v. FERC, 374 F.3d 1263, 1270–71 (D.C. Cir. 2004), the Federal Energy Regulatory Commission (“FERC”) ordered petitioner SFPP, L.P. (“SFPP”) to pay reparations to the complaining shippers using its Watson Station drain-dry facilities. SFPP, L.P., 122 FERC ¶ 61,126 (2008) (“Order on Initial Decision”). SFPP contends that notwithstanding its failure to file the Watson Contract rates, FERC’s decision was arbitrary and capricious for failing to explain why it rejected its previous findings that special circumstances justified enforcement of the unfiled rate contracts. The circumstances surrounding the shippers’ agreement to the Watson Contract rates, SFPP maintains, “allay any reasonableness or discrimination concerns” and “manifestly present good cause.” Pet’r's Br. 12. FERC responds that the unfiled contract rates could not supplant its authority to ensure rates are just and reasonable and that it reasonably determined the payment of reparations was an appropriate remedy. Concluding that FERC’s determination of the rates was not arbitrary or capricious and that the remedy was within its discretion, we deny the petition for review.

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