Services Team Clients Case Studies:   Oil and Gas   • Breach of Contract/Lost      Profits   • Environmental   • Valuation   • Intellectual Property   • Bankruptcy/Business      Reorganization   Coal/Extractive   • Breach of Contract/Lost      Profits   • Valuation   • Bankruptcy/Business      Reorganization   Utilities   • Breach of Contract/Lost      Profits   • Class Action   • Valuation   Alternative Energy   • Nuclear   • Solar News Energy Sector Home		Case Studies - Oil and Gas Breach of Contract/Lost Profits Case Study A Engagement A natural gas exploration and production company purchased a division of a larger energy company. Since it had purchased the operating business, it was also obligated to the existing labor contracts. However, since it was no longer part of the larger company, it was not eligible to be a member of the pension and 401(k) plans of the old controlled group. Our client negotiated to an impasse with the union, and then implemented the benefit package that it had offered the unions. The union filed a grievance claiming that the company was violating its union agreement. This resulted in the scheduling of a hearing before a labor arbitrator. Gleason's Role We analyzed data provided by the client concerning the retirement benefits currently offered and the benefits as provided by the previous controlled group owner. The effects of the changes had a wide variety of impacts based on the employee's age, work years and current pay rates. We provided counsel for the client with tables demonstrating the financial impact of the terms on the employees. Results The client was successful in convincing the arbitrator that while its benefits were not identical to those of the old controlled group; it had in fact complied with contract language. Case Study B Engagement The Plaintiff, a public gas company, undertook the installation of over 25,000 feet of a 12-inch steel distribution main in Allegheny County, PA. The purpose of the installation was to enable the Plaintiff to provide gas for approximately 1,200 homes. In order to protect the pipe and to comply with relevant regulations, the Defendant was contracted by the Plaintiff to apply an epoxy coating to the pipe. Approximately ten years later, the Plaintiff discovered that the coating was in a condition that could reduce protection and possibly result in regulatory violations. The Plaintiff alleged that it had expended and would continue to expend additional costs to maintain and repair the pipe. Gleason's Role Gleason & Associates was retained to review the Plaintiff's damage claim for the costs it had expended to date and those costs that would continue to be expended for testing, repairing and monitoring the alleged defectively-coated pipe. Results Gleason & Associates determined that the Plaintiff had incurred and could expect to incur total damages of approximately $200,000 related to the allegedly defective coating. Conversations with the Plaintiff, as well as our understanding of the gas industry, revealed prior costs of approximately $22,000. They were related to labor costs and necessary bacteria purchases, and the installation of test station shunts, pipeline wrap and pipeline paper. Future maintenance costs related to the defective coating were estimated to sum approximately $200,000. They were projected to be related to close internal surveys and voltage readings, magnesium anode depletion and replacement, and rectifier installations and metallic bonding. The case settled prior to trial. Top of page Why Gleason | Practice Areas | Meet Our Team | Case Studies | Continuing Education | Resources | Site Map | Contact Us | Home © 2011 Gleason & Associates One Gateway Center, Suite 525, 420 Ft. Duquesne Blvd., Pittsburgh, PA 15222, Phone: 412.391.9010,