With the direct knowledge of business management, engineering, and finance aspects within the energy industry, our consultants can provide objective, content-based assessments of technical and commercial issues. Clients have retained us to advise in matters such as construction disputes, breach of contract claims, oil and gas royalty cases, insurance claims, property tax valuations, and incident investigations. Our consultants have provided expert opinions in state and federal courts, state legislatures, mediation proceedings, domestic/international arbitration proceedings, and before legislative bodies. Pearson Adair & Co. professionals have a proven track record of successful outcomes, and in particular, assisting clients with large, complex matters leveraged by the interaction of technical and commercial issues.
Expert Testimony Natural Gas, LPG, And Olefins Underground Storage Loss, Major U.S. Gas Transmission Pipeline Company
Retained to provide expert opinions with respect to the technical capabilities and commercial value of adjacent underground storage caverns located near the Henry Hub in Louisiana. Completed evaluation of technical capabilities of storage facilities for natural gas, LPG, and olefins in order to assess losses associated with the catastrophic failure of one cavern. Valuation included assessment of market conditions such as supply/demand and pricing prior to the incident, at the time of the incident, and in the future. Provided expert opinions for case-in-chief and rebuttal as well as deposition testimony.
Expert Testimony Natural Gas Gathering and Processing Contract Dispute, South Texas
Retained by integrated international petrochemical manufacturer with gas processing and olefins manufacturing capacity in South Texas to evaluate claims made by gas gatherer and marketer under gas processing and product sales contract. Completed evaluation of large wet gas gathering system, gas supplies, gas quality, measurement, and gathering operations as well as gas plant processing operations, including compression, treating, processing, and product qualities. Provided analyses and conclusions with respect to evaluations and damages model of other experts and offered expert testimony at deposition and trial.
Compressor Station Accident
Investigated causes of a high-pressure natural gas pipeline accident at a compressor station. During construction, a temporary vent was constructed without support, leading to failure of a threaded connection.
Processing Cost Allowances on NGL Royalties
Provided expert reports and testimony on behalf of 12 major independent gas producing companies in Federal Qui Tam litigation. Responded to Relator’s claims to exclude recompression costs from the processing cost allowances allowed by the Mineral Management Service (MMS). Reviewed the design and operation of numerous gas plants, and demonstrated that recompression is integral to the cryogenic turbo-expander process and its associated costs were fully deductible.
Investigation of Gas Processing Plant Accident
Assisted a large oil company in the investigation of an explosion and fire with resulting failure of natural gas supply from onshore crude oil, condensate, and natural gas processing facilities located near the Bass Strait of Australia. Reviewed facility design, operating, and maintenance standards and assisted in the preparation of testimony before a Royal Commission formed by the State of Victoria.
Testified on behalf of an independent producer and processor as to the fairness of a proposed natural gas agreement, which was negotiated in the settlement of a class action lawsuit by royalty owners in the Fort Worth basin.
Refined Petroleum Products Truck Rack Fire
On behalf of a petroleum product trucking company, investigated the root cause of a vapor cloud ignition and flash fire at an oil refinery truck rack. Considered applicable NFPA, OSHA, and EPA standards for metering and loading hazardous liquids. Prepared expert reports on cause and effect, business interruption, and property damage.
Valuation of Overriding Royalty Interest, Equatorial Guinea
Retained to analyze and formulate expert opinions regarding the methodology being utilized by operator of offshore concession to determine the market value of NGL and condensate being produced for export from Equatorial Guinea. Analyses included completion of an audit of prior payments made to the holder of the Overriding Royalty Interest as well as evaluation of the fair market value of the products.
Gas Processing Contract, Independent Operator, Texas Panhandle
Retained to assess gas settlement accounting under an existing contract and prepare an independent valuation of damages due the producer. Assisted producer in negotiation of damage settlement resulting in producer’s recovery of all outstanding amounts. Supported producer in follow-up negotiations with processor to negotiate a new gas processing contract.
Workout Advisory, Syndicated Bank Debt, Southwestern U.S
Retained by creditors to evaluate the ongoing operations of a crude oil gathering and marketing company operating in conjunction with a merchant refiner located in the southwestern U.S. Work included the assessment of crude oil gathering pipeline operations, trucking operations, system inventory, contract analysis, and risk management activities. Completed a detailed economic analysis of historic profitability and constructed pro forma analysis of business including new venture opportunities.