Legal Support Services
Additional case studies provided upon request.
Legal Support
Resolving a Misallocation Dispute in the Gulf of Mexico
Summary:
A legal team representing a Gulf of Mexico producer turned to JAA Energy Advisors in October of 2020 for expert consulting support in a dispute over a misallocation of Gulf of Mexico condensate between their producer client and a large midstream company.
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Challenges:
The dispute involved highly technical allocation practices and required an expert who could navigate operational complexities, review extensive documentation, and provide defensible testimony.
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Services Provided:
JAA Energy Advisors provided comprehensive litigation advisory and expert witness services, including:
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Review of all produced case documents
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Expert insight on industry customs and practices
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Evaluation and rebuttal of plaintiff and defendant positions
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Conclusion:
Our focused analysis and credible testimony supported a successful settlement between the parties—avoiding a lengthy litigation process.
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Legal Support
Navigating Industry Challenges: Establishing Expertise for Advisory and Legal Support
Summary:
In May 2021, a Houston-based law firm specializing in litigation, sought expertise from JAA Energy to navigate complexities within the oil and gas industry value chain. This case study outlines how JAA Energy's advisory services supported the law firm in resolving disputes related to Winter Storm Uri and ultimately led to a reputation for expert witness services.
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Challenges:
The case faced challenges within the oil and gas value chain, particularly concerning contracting, industry customs, practices, and performance during Winter Storm Uri in February 2021. Understanding the intricacies of these issues was crucial for effective litigation strategy and dispute resolution. To address these challenges, the law firm approached JAA Energy for expert advisory support.
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Services Provided:
JAA Energy provided comprehensive advice including:
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Review and Analysis: JAA Energy reviewed and analyzed specific circumstances and facts related to contracting, industry customs, practices, and performance during Winter Storm Uri.
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Expert Advice: Leveraging their expertise in the oil and gas industry, JAA Energy provided expert advice to the law firm, offering insights and recommendations to support litigation strategy and dispute resolution efforts.
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Conclusion:
The collaboration between the defendant's law firm and JAA Energy exemplifies the importance of real and current expert advice in navigating complex challenges within the oil and gas industry. By providing strategic insights, expert analysis, and actionable recommendations, JAA Energy supported legal counsel in effectively addressing industry-related disputes and litigation. This case study highlights the critical role of expert advisory and witness services in achieving successful outcomes in legal proceedings within the oil and gas sector.
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Expert Witness Services
Expert Support in $16MM Gathering & Processing Dispute
Summary:
JAA Energy Advisors was engaged in January 2021 by a Houston-based energy sector transaction and litigation firm to support litigation over a $16 million claim involving unpaid gathering and processing fees, as well as allegations of breach of dedication.
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Challenges:
The case required a nuanced understanding of midstream agreements and industry-specific precedent to evaluate contract obligations and defend against breach allegations.
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Services Provided:
End-to-end litigation support, including:
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Review of discovery documents
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Clarification of industry standards for gathering and processing
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Analysis and rebuttal of both sides’ legal positions
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Delivery of a comprehensive expert report
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Outcome:
JAA’s industry insight and risk-conscious approach led to a mutually agreed-upon settlement, strengthening our client’s legal position and preserving relationships.
Expert Witness Services
The Importance of Expertise in Complex Legal Challenges
Summary:
In May 2022, A large exploration and production petroleum company engaged in a dispute and litigation with a petroleum marketing company regarding natural gas marketing and physical deliveries during Winter Storm Uri in February 2021. This case study examines how JAA Energy's expert witness services supported the law firm and defendant in resolving their legal proceedings.
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Services Provided:
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Document Review: JAA Energy reviewed the discovery documents provided by all parties involved in the litigation.
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Opinion Formation: Based on the circumstances of the case, JAA Energy formed expert opinions.
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Report Drafting: Expert Reports and Rebuttal Reports were meticulously drafted by JAA Energy to present their findings and opinions.
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Testimony: JAA Energy's expert testified during the proceedings, providing insights and expertise to support the client's legal defense.
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Outcome:
As a result, the parties involved in the litigation were able to settle. The comprehensive analysis and testimony of JAA Energy contributed to the case's resolution, allowing the defendant to mitigate legal risks and avoid prolonged litigation.
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Conclusion:
JAA Energy Advisors has been engaged in business for decades with downstream and upstream energy suppliers and providers. By providing thorough analysis, expert opinions, and credible testimony, JAA Energy supports law firms with a proven record of achieving a favorable outcome and resolving litigation through settlement. This case study underscores the critical role of expert witness services in achieving efficient and satisfactory resolutions in legal proceedings through settlement.
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Bankruptcy Support
Resolving Legal Disputes in Energy Sector Bankruptcy
Summary:
In June 2019, a prominent Exploration & Production (E&P) company faced significant challenges stemming from production shut-ins caused by delays in pipeline service and exports, particularly due to the operational failure of a pipeline in the Marcellus basin. This case study describes the collaboration between JAA Energy Advisors, legal counsels, and energy suppliers to navigate complex legal disputes and bankruptcy proceedings.
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Challenges:
Unable to meet downstream transportation commitments, the E&P company filed for Chapter 11 bankruptcy in May 2019. Subsequently, they initiated legal action against the pipeline operator. In this challenging scenario, the debtor committee engaged a team that enlisted the expertise of JAA Energy to provide insights into midstream operations and gathering contracts.
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Services Provided:
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Consulting & advising on expert witness preparation.
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Assistance in understanding oil gathering and processing contracts and the intricacies of midstream pipeline operations.
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Interpretation of the build-out and in-service performance obligations of the pipeline infrastructure.
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Outcome:
Litigation: The legal dispute faced significant challenges, leading to a stall in proceedings. Consequently, the E&P client converted its Chapter 11 bankruptcy filing to Chapter 7 in November 2019.
Liquidation Process: A Plan of Liquidation began in April 2020, culminating in the completion of the company's liquidation effective July 31, 2020. The pipeline failure was investigated by the Department of Justice and resulted in numerous cited construction violations and over $30MM in fines.
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Bankruptcy Support
Organizational Revival: A Case Study of Strategic Turnaround for a Midstream Energy Company
Summary:
In the wake of financial turbulence, a U.S. onshore energy company found itself on the path to organizational renewal following a period of bankruptcy reemergence in August 2017. To expedite its recovery process, it partnered with JAA Energy, seeking expertise in selecting a marketing firm and bankruptcy restructuring services. The partnership exemplifies the power of strategic collaboration in driving organizational transformation. By leveraging specialized expertise and a shared commitment to excellence, the complexities of a turnaround journey were successfully navigated, and more resilience emerged in the process.
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Challenges:
Amidst lingering financial pressures and the need for strategic recalibration, our client embarked on a journey to enhance operational efficiency. With bankruptcy looming again in late March 2019, the stakes were higher than ever. The dual challenges of identifying a suitable marketing partner and navigating the complexities of bankruptcy restructuring demanded meticulous planning and execution.
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Services Provided:
Marketing Firm Selection
• JAA Energy conducted a comprehensive assessment of marketing needs.
• Through a rigorous vetting process, potential partners were interviewed and evaluated.
• Negotiation and procurement of outsourced marketing services were facilitated, culminating in selecting a suitable firm.
• Contracts were structured with tailored performance termination rights, ensuring flexibility and alignment with evolving requirements.
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Bankruptcy OCP Services:
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JAA Energy undertook the task of organizing and reviewing an extensive contract portfolio.
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A meticulous analysis of 423 contracts across 13 basins was conducted.
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Restructuring strategies were formulated and executed, leading to significant NPV savings.
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A final bankruptcy contract challenge list was developed, providing the client with a clear roadmap for the restructuring process.
Results
The collaborative efforts between JAA Energy and its client yielded tangible results, driving the organization closer to its revival objectives.
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A marketing firm was secured whose services were strategically structured to align with the organization's financial constraints and performance expectations.
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Through meticulous contract analysis and strategic interventions, JAA Energy identified and executed restructuring initiatives resulting in substantial NPV savings exceeding $7 million within the midstream operations, bolstering financial resilience in the face of adversity.
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