Lawyer Monthly Magazine - May 2019 Edition

Why do the aforementioned cases arise? Different types of cases arise for different reasons. Patent related cases typically arise due to the infringement of a patent, by ei- ther the plaintiff or the defend- ant. Trade secret cases typically arise due to the alleged misap- propriation of a trade secret by a third-party. Equipment failure cases typi- cally arise from incorrect equip- ment specifications, lack of pre- ventive maintenance, cyclical fatigue, or alleged negligent engineering design that results in a catastrophic failure. Operational negligence cases arise from mistakes made by personnel in a drilling, comple- tion or facilities construction operation in the field. We also use our engineering economic analysis and big-data analysis techniques to generate defen- sible damages models. Oil and gas commercial litiga- tion cases typically arise from a disagreement related to a busi- ness transaction or contractual relationship between oil and gas operators, mineral interest owners, or between an oil and gas operator and one or more service companies. What are the vital regulations and requirements clients must meet in order to avoid such dis- putes? In patent related cases, a thor- ough analysis of the prior art and narrowly focusing the patent application on the embodiment which is likely to generate the Handling a variety of ex- pert witness cases, includ- ing patent disputes, inter partes review of patents, equipment failure, opera- tional negligence, trade secrets, damages mode- ling and oil and gas com- mercial litigation, Harold E. McGowen III shares more about why these cases occur and what he predicts is in the pipeline for the petroleum field in the upcoming years. greatest return on investment should make for a stronger and more valuable patent. We have often seen patents that are de- signed to cover the largest pos- sible number of embodiments, but in the process, they become vulnerable to attack through the prior art. Navidad Energy Advisors can assist in the process of assessing the marketplace for a particular patent idea so that the patent attorneys can take into account the most valuable applications for the invention when drafting the patent. Contractual indemnification and other limitations on liabil- ity related to equipment failures is probably the best defense against equipment failures in the field. Also, equipment man- ufacturers and vendors should carefully document their quality control and quality assurance methodology and provide suf- ficient technical support and training for end users. For trade secret cases, employ- ers should make sure that their employees understand what trade secrets are, and the rami- fications of misappropriations of trade secrets. Many personnel in the oil and gas industry do not have an accurate understand- ing of the seriousness of trade secret misappropriation, or even what types of information are defined as trade secrets under the law. In my experience, a significant amount of commercial litigation in the oil and gas industry is re- lated to poorly drafted contracts that are not easily understood by personnel with the responsibility of adhering to those contracts. ENERGY LAW Attorneys with a thorough under- standing of the business objec- tives of the parties will work to create fair and equitable con- tracts that are practical to im- plement over the course of time, can help their clients avoid litiga- tion in the future. Vague and/or poorly written win/lose contracts provide fertile ground for future litigation. Moreover, many po- tentially lucrative deals have been killed by the introduction of complex and inequitable terms that only benefit one party. How do you expect the field of petroleum engineering to change in the next few years? How do you predict this will change the types of disputes you will see? The industry will have to become more and more efficient as the sweet spots within existing oil and gas plays are drilled up and the less productive adjoining acreage is developed. This will require improved efficiency that can only be obtained through more innovative and sophisti- cated technologies, processes, materials and procedures. I ex- pect to see intense competition related to intellectual property across the entire spectrum of the oil and gas industry from geophysical acquisition through drilling, completion, production and transportation. I also expect to see patent and trade secret cases related to the applica- tion of big data in AI to the oil and gas industry. Navidad En- ergy Advisors has a strong back- ground in the application of da- tabase technology in the oil and gas industry, therefore we are well positioned to assist clients in these matters. LM Harold E. McGowen III, Navidad Energy Advisors Contact Navidad Energy Advisors 16421 FM 344 West Bullard, Texas 75757 Phone: +1 (844) 628-4323 hmcgowen@navidadenergy.com www.navidadenergyadvisors.com Harold E. McGowen III My name is Harold McGowen, and my firm is Navidad Energy Advisors, a registered professional engineering firm in the state of Texas. We specialize in petroleum engineering related projects with an emphasis on horizontal drilling, hydraulic fracturing and related downhole tools, processes, and equipment. MAY 2019 53 Expert Witness www. lawyer-monthly .com