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Baker & O'Brien Releases First Quarter 2022 Edition of Energy Expert: Issues in Focus

June 14, 2022

This quarter’s Energy Expert newsletter profiles three recent Baker & O’Brien’s engagements, including an insurance case concerning an early shutdown of a petrochemical complex, a pipeline regulatory matter involving a common carrier pipeline, and a lost profits lawsuit relating to the construction of a gas gathering and processing facility.  We hope you find the articles interesting and insightful.


Catalyst Damage – Did the Operator Incur an “Extra” Turnaround

Gary Devenish

Several months after an unplanned outage, a petrochemical complex took an early shutdown to perform major maintenance.  The operator filed an insurance claim for economic damages.  Baker & O’Brien was engaged to assess production losses for the outage, examine operator actions to mitigate the economic damages, and review the impact of the early shutdown on the long-term turnaround cycle.  We facilitated the dispute resolution process through technical memoranda and discussions between the insurance market and the operator.

Terminator Operator Access to Crude Oil Pipeline – Connecting the Dots

Kevin Waguespack

Pipeline regulatory agency involvement was required when a terminal operator sought to blend a heavy crude oil into a light sour crude oil shipped on a common carrier pipeline.  Baker & O’Brien identified the regulatory requirements and determined the economic impact of the proposed crude oil blending.  We submitted expert reports to assist the regulatory agency in evaluating the issue, which was decided without oral hearings.

Can’t Keep a Good (Gas) Man Down – Lost Profits from Late Plant Completion

Robert Beck

Delays in the construction of gas gathering and processing (G&P) facilities led to a lawsuit filed against the EPC contractor by a midstream company alleging lost profits.  We reviewed G&P contracts, evaluated operating costs, and analyzed the gas quantities processed by competitors due to the late completion to quantify lost profits.  The parties relied on Baker & O’Brien’s expert reports and deposition testimony to reach a settlement.


 

The newsletter can be found at the following location:  Energy Expert Newsletter - June 2022