Baker & O'Brien consultants are frequently retained as consulting or testifying experts and have been qualified to offer evidence in many contract disputes involving the energy industry. Typical assignments include: (a) quality variations in crude oil supply and pipeline contracts; (b) product measurement discrepancies; (c) asset valuations; (d) force majeure; (e) operations and maintenance; f) production sharing; and (g) royalties. Our clients have included oil and gas companies, trading houses, and underwriters and brokerage houses. PRIMARY CONTACTS 1 of 6
PRIMARY CONTACTS W. Rob Donnell Chief Executive Officer Dallas Daniel R. Finelt Consultant Houston Dileep N. Sirur Vice President, Recruiting Manager Dallas 2 of 6
Kevin G. Waguespack Executive Vice President Houston RELATED EXPERIENCE 3 of 6
RELATED EXPERIENCE Ammonia Plant Project Finance Served as independent engineer on behalf of a major European bank for the relocation of a 750 TPD ammonia plant. Prepared a technology assessment, analyzed feedstock supply, reviewed contracts, and inspected progress prior to close of financing. Monitored construction progress and mechanical completion, and witnessed the plant performance test. Audit of Gas Contract Conducted an audit of the revenue settlement of natural gas liquids and residue gas per the terms of a gas processing agreement. Investigated causes of reduced product yields, and reviewed compressor operation, fuel consumption, and product and fuel allocation procedures. Crude Oil Processing Contract Dispute Served as an expert witness in a case between an international oil trading company and an independent refining company concerning allegations that the refiner misappropriated products to its own account. Analyzed the refinery production and product disposition under each processing deal over a period of three years and calculated the trader's damages under the misappropriation. Prepared a detailed damages claim for insurance purposes and defended the claim at trial in State of New York. Jet Fuel Underpayment Claim Assessed jet fuel supply contracts to the Defense Energy Supply Center to see if an overpayment claim was justified. LPG Pipeline Specifications Evaluated pipeline tariffs, product specifications, connection agreements, and liquefied petroleum gas sales agreements, including the determination of fractionator feedstock and product economics, for the export of liquefied petroleum gas to northern Mexico from fractionation facilities in West Texas. Market Analysis and Term Supply Contracting - Synthetic Crude Oil Assisted a Venezuelan joint venture company in developing a marketing strategy for a new synthetic crude oil. The assignment included an evaluation of the potential market for the new production, modeling of refinery values for the new production, detailed assessments of potential 4 of 6
supply agreements, and assistance in term contract negotiations. Market Value of Natural Gas Determined the reasonableness of royalty payments for natural gas by comparing available arm's-length contracts, pricing, and actual costs of gathering, compressing, and processing the gas. Natural Gas Royalty Dispute On behalf of several producing companies, demonstrated the reasonableness of royalty payments for natural gas by comparing available arm's-length contracts, pricing, and actual costs of gathering, compressing, and processing the gas. Natural Gas Tax Dispute Following the imposition of a new oil and gas taxation regime, a dispute arose regarding the contractual right of local natural gas producers to "pass through" incremental taxes to their customers. Served as expert witness in front of an international arbitration tribunal established to decide the issue. Key work involved the development of a fair mechanism to allocate recovery and distribution costs between "jointly" produced hydrocarbons, including oil, condensate, natural gas, and natural gas liquids. Prepared and defended specific proposal in the arbitration proceedings. Oil Refining Crude Supply Dispute Provided engineering and project management consulting services for litigated dispute between two large oil companies concerning an acidic crude oil supply agreement (high TAN crude, high acid crude). Prepared expert report. Paper Coating Plant Project Finance Served as independent engineer on behalf of a major financial institution for the construction of a new $100 million paper coating plant. Prepared due diligence, assessed technology, evaluated project scope of work and schedule, reviewed engineering, procurement, and construction contracts, and advised bank with respect to mitigation of project risks. Product Supply Contract Review Following the notice of cancellation of a product supply agreement based on crude processing, to be replaced with an agreement where refined product prices were to be supplied based on adjustments to posted prices, evaluated the economics of the proposed supply contract compared 5 of 6
with the existing crude processing agreement. Determined the required level of discount to OPIS prices to match product cost under the existing crude processing arrangement. Pipeline Contractual Dispute Assisted in a claim between a major U.S. energy provider and project promoters concerning claims that the energy provider defrauded project promoters when it proceeded with the construction of an international natural gas pipeline. Submitted report outlining the differences between energy provider's project and the promoters' project. Chlorine Contract Dispute In a lawsuit involving a long-term chlorine supply contract, provided litigation support relating to a series of force majeure events. Analyzed the chlorine producers options to mitigate the loss of contracted sales volumes. Natural Gas Gathering Fee Dispute Reviewed natural gas contracts to opine on whether addition of a gas gathering fee was consistent with typical commercial experience on intrastate pipelines. Pipeline Operating Dispute Assisted in a dispute between an owner and an operator of a recently-constructed crude oil pipeline. Prepared an expert report concerning: (1) the facilities that should have been provided as part of the capital project to construct the pipeline; (2) the equipment necessary to operate and maintain the pipeline; and (3) whether defects found during the early operating period were the result of improper equipment design specifications and construction, or improper operation and maintenance. Testified at arbitration in London. 6 of 6