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Baker & O'Brien Releases Second Quarter 2019 Edition of Energy Expert: Issues in Focus

August 15, 2019

This quarter’s Energy Expert newsletter profiles several of Baker & O’Brien’s recent engagements that we hope you will find interesting and thought-provoking:

Engineering, Procurement, and Construction (EPC) - Change of Scope or Design Development?

 We begin our newsletter with a dispute described by Peter Halliday concerning schedule delays, scope changes, and increasing costs on an EPC project for a utilities facility.  We produced an expert report regarding the degree of completeness of the FEED, the impact of its completeness on project execution, and whether the as-built changes were the result of design development or a change in the scope of work.

A "Fast Track" Project Leads to a Dispute Over the "Finer Details" of an Agreement

Aaron Imrie describes how gas processing facilities can impact sales gas quality and can shift the income balance between sales gas and natural gas liquids (NGLs).  This dispute between owner and developer resulted from such a material balance shift when early production facilities were used to expedite bringing the gas stream online.  Baker & O’Brien presented written and oral testimony on the differences between installed facilities and those described in their production sharing agreement, and the impact that these differences had on gas quality.

Heat Exchanger Performance Failure - What Went Wrong?

Specialty equipment is essential to the effective and efficient operation of process plants; hence, original equipment manufacturers (OEM) may guarantee that installed-performance meets specific parameters.  Gary Devenish presents a case where the owner claimed a flawed design of new heat exchangers while the OEM countered that the equipment was being operated outside of owner-provided design specifications.  Baker & O’Brien produced an expert report that reduced a very complex technical and economic evaluation into readily understandable concepts.

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