Contract Reviews

Refinery and Chemical Plant Inter-Plant Contract Dispute

Assessed the financial magnitude and contract basis for numerous claims of non-compliance and non-performance with contracts between an adjacent refinery and chemical plant.  Issues included feedstock transfers, pricing, expense allocations, material balance, and reporting.

Natural Gas Price Hedge

On behalf of a large pipeline company, reviewed a Gas Industry Standards Board (GISB) standard contract used to memorialize a fixed forward physical contract price hedge by a producer.  The contract confirmed a verbal transaction for a 10-year forward sale of natural gas at a fixed price.  Rebutted claims by the producer who later attempted to characterize the transaction as a floating price contract with a price floor.

Refinery and Chemical Plant Inter-Plant Contract Dispute

Assessed the financial magnitude and contract basis for claim of incorrect pricing of feedstocks transfers between an adjacent refinery and chemical plant.  Provided expert testimony.

Audit of Full Well Stream Gas, NGL and Condensate Allocations

Determined the allocation of condensate between lease condensate and plant processing products.  Condensate was transported in a “full well stream” gathering system and separated at central compression facilities and NGL recovery plants.  Considered results from test separation at the lease, and corrected allocation of condensate and residue gas based on a “pentanes plus” allocation method.

Refinery and Integrated Gasification Combined Cycle (IGCC) Inter-Plant Contract Dispute

Assessed the financial magnitude and contract basis for claim of uneconomic pricing of petroleum coke as a fuel to a integrated gasification combined cycle (IGCC) plant.  The refinery company who was the supplier of the petroleum coke was attempting to adjust the contract price terms for the coke with the owner of the IGCC.

Audit of Natural Gas Processing Facilities

Performed an independent evaluation of a producer's settlement received from the processing of natural gas by a third-party processor.  Discovered significant irregularities in the processor's settlement procedures and numerous deviations from the terms of applicable gas purchase agreements.  Conducted operational review to correct plant product and residue gas allocations.

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.

Independent EPC Contract Review

Prepared an independent review of an EPC contract for a large combined cycle power plant which included a review of the technical scope definition, assessment of liquidated damages, and contract administration and milestone payment procedures.