The operator of a natural gas gathering system in one of the US Shale Plays was not fulfilling its role in the appropriate calculation and assessment of natural gas gathering fees. Under a Joint Operating Agreement and Ancillary Facilities Agreements there were clear guidelines for the calculation of fees.
Secretariat professionals worked with the non-operator in defining the damages and developing the basis of the claim is arbitration. Calculation of damages was the primary focus, but additional industry expertise was required in the form of expert testimony on industry practices for development of gathering rates.
The client relied on our extensive industry expertise in the calculation of long-term gathering fees, providing clear understanding of industry practice related to the obligation of operators in developing gathering fees correctly and in accordance with industry practice. Further, we assisted the client and the panel in the correct calculation of damages and communication of the correct message related to industry practice. The panel issued an award in favor of our client, and then asked us to calculate the final damage award.
Jennifer Vanderhart, Steven Schwartz, Richard Brady, and Aminta Raffalovich authored a chapter in The Guide to Damages in International Arbitration – Sixth Edition. The guide is designed to assist the global arbitration community in understanding damages issues. The chapter is titled “The Use of Econometric and Statistical Analysis in Damages.”
Managing Directors Stuart Dekker, Joe Skilton, and Eddie Tobis authored the chapter “Compensation for Expropriation” in the 9th Edition of The Investment Treaty Arbitration Review.
Maintaining Ethics & Integrity in a Volatile Economic Environment Means Spotting the Banana Peels
Periods of economic pressure are often marked by increased rates of corporate fraud that can happen despite the presence of risk management frameworks. In this article published by Corporate Compliance Insights, Hitesh Patel offers a modern, holistic risk view that can help spot the pitfalls lurking in the way.