Baker & O'Brien's natural gas consulting practice has grown in concert with theemerging role of natural gas as the world's preferred fuel choice. As natural gas isprocessed, impurities and water are removed to meet pipeline gas qualityspecifications. Further processing may be performed to recover natural gas liquids,produce liquefied natural gas, or provide compressed natural gas. Baker & O’Brien isone of the leaders in evaluating gas-to-liquids technology and project economics. Additionally, we provide expert witness testimony and advise clients on the properinterpretation and application of natural gas contract terms. We have evaluatednumerous acquisitions and divestitures of natural gas and natural gas liquidsgathering, processing, treating, and transportation facilities. In addition, Baker &O’Brien has established appropriate market value of natural gas and condensate,provided expertise in the construction and operation of production and processingfacilities, and established the causes of major pipeline and processing incidents.

PRIMARY CONTACTS

RELATED SERVICESAccident/Incident InvestigationAsset ValuationsDue Diligence and Advisor toLenders and InvestorsEngineering, Procurement, andConstruction (EPC)Markets and StrategyMerger and Acquisition SupportProperty Damage and BusinessInterruption Insurance ClaimsTechnology Assessment

Robert L. BeckConsultantHouston

Kevin H. BuntenConsultantLondon

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GAS PROCESSING

RELATED EXPERIENCEApplication of Superfund Tax to Gas ProcessorsReviewed legislation relating to the Superfund Tax and its applicability to natural gas processors who produce natural gasoline attheir facilities. Compared natural gas processing with crude oil processing in order to show whether the Superfund Tax wasintended to be levied on gas processors. Audit of Gas ContractConducted 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 fuelallocation procedures. Construction Dispute - Gas PlantProvided expert reports and testimony regarding project management issues, alleged defects, and liquidated damages forinternational arbitration between owner and contractor. The project involved an offshore platform, an undersea pipeline, anonshore pipeline, an onshore cryogenic gas processing plant, and a sales gas pipeline. Construction Dispute Litigation - Gas PlantAssisted in a litigated dispute between Owner-Operator and Engineering & Construction Contractor over whether a cryogenic gasplant, as engineered, procured, and constructed, met the stipulated contractual performance guarantees; prepared expert witnessrebuttal report with respect to relevant issues. Contractual DisputePerformed a due diligence of owner allegations and contractor claims pertaining to a Lump Sum-Turn Key contract termination. Reviewed documents, schedules, witness statements, and expert reports to advise counsel on implications of contracting strategyand contract management following award. Fertilizer Project Due Diligence AssessmentIn conjunction with a leading upstream consulting firm, conducted a due diligence assessment of gas resources for the purpose of

Aaron J. ImrieConsultant, Recruiting ManagerDallas

Carl A. RobertsonConsultantDallas

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developing a fertilizer complex associated with onshore and offshore gas production under development. The assignment entaileddelineating the quantity and quality of gas resources available to support the prospective fertilizer project and estimating costs todeliver natural gas suitable for producing nitrogen fertilizers to the project. Gas ProcessingPerformed a preliminary evaluation of the gas processing design, capital costs, and economics for a natural gas liquids recoveryand fractionation facility and a condensate stabilization facility in the Republic of Turkmenistan. Gas to Liquids EvaluationOn behalf of a major oil and gas producer, prepared a conceptual design for a Fischer-Tropsch based gas-to-liquids unit using lowvalue associated gas to produce LPG, gasoline, and zero sulfur diesel. Developed estimates of charge and yield, capital andoperating costs, and project development and capital spending schedules. Gas Well IncidentPrepared expert report on behalf of client versus OSHA. Matter involved failure of a pipe carrying natural gas that injured onecontractor. OSHA cited client for failure to provided a safe means of pressure relief for vessel (in-line heater) and piping. Gasification Project AssessmentAssisted in the evaluation of a petcoke-to-substitute natural gas facility to support possible equity investment. Assessment includedreview of technology, commercial issues, and economics. Global Gasification Feedstock AnalysisConducted an analysis of the potential low-cost carbon feedstocks for a grassroots gasification project to produce a combination ofsynthetic fuels and electricity. The study investigated sources and delivered costs for various feedstocks, including coal, petroleumcoke, and low-valued refinery streams such as residuum and cracked fuel oils. Historical data was used to assess pricingmechanisms for world petroleum coke prices, including delivered coal prices to Japan and Western Europe. Independent EngineerRetained as the Independent Engineer for the "grassroots" Tangguh LNG Liquefaction Project in Indonesia. Prepared the technicaldue diligence for the US$3 billion facility on behalf of a financial consortium. Investigation of Gas Processing Plant IncidentAssisted in the investigation of an explosion and fire with resulting failure of natural gas supply from onshore crude oil, condensate,and natural gas processing facilities located offshore. Reviewed facility design, operating, and maintenance standards andprepared expert testimony. LPG Pipeline ContaminationEvaluated pipeline contamination and potential sources of contaminants from various sources. Manufactured Gas PlantProvided technical assistance and review of historical documents in support of litigation regarding the environmental cleanup of amanufactured gas plant site. The site, which had various gasification units in operation between approximately 1870 to 1950, hadbeen used for a number of other purposes. Analysis investigated the contamination present at the site to all previous and currentgas plant operations. Midstream Acquisition Due DiligenceAssisted energy distribution company with due diligence for potential transaction involving gas gathering and processing assetslocated in the Permian Basin. Assets evaluated included over 4,000 miles of gas and liquid pipelines, four gas processing plants,and multiple gas treating plants. Participated in data room reviews and management presentations with a focus on commercial,operational, and technical evaluations of midstream systems. Developed comprehensive economic model of the integrated

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gathering and processing assets that was used to determine valuations and evaluate key sensitivities. Natural Gas Asset Strategic InitiativePrepared job descriptions and qualifications as part of a new organizational strategy of a fully integrated natural gas division. Natural Gas Production FacilitiesServed as one of two project managers responsible for the engineering, procurement, and construction of a 200 million cubic feetper day natural gas recovery facility in central Algeria to provide the feedstock for a new liquefied natural gas (LNG) plant on theAlgerian coast. At the time of installation, the $250-million project was the largest of its kind in the world. Conducted negotiationswith local labor, equipment, and utility suppliers. Arranged meetings with local environmental agencies to ensure compliance withall national environmental rules and regulations. Offshore Pipeline ProjectServed as Independent Engineer on behalf of a major financial institution for a $200 million project to build a deepwater gas andoil-gathering system. Prepared a valuation of offshore pipelines and an onshore gas processing plant for gathering and processingof deepwater Gulf of Mexico oil and gas production in support of structured finance. Certified completion of the project for financialpurposes. Propane Product Quality DisputeInvestigated the design and operation of a natural gas liquid fractionation, storage, and loading facility located on the Red Sea todetermine potential causes of alleged hydrogen sulfide contamination of propane cargoes. Valuation of Pipelines and Gas PlantServed as independent engineer on behalf of a major bank to value and certify completion of a project to build offshore pipelinesand an onshore gas processing plant for gathering and processing of deepwater Gulf of Mexico oil and gas production. Thevaluation was prepared for the lender in support of $200 million of structured finance. Salt Water Disposal Tank ExplosionInvestigated the cause and origin of a storage tank explosion at an oil and gas salt water disposal facility in Colorado. Conductedsite investigation and facility/equipment inspections, evaluated system design and operation, and conducted witness interviews.Determined cause of explosion and worked with company management to evaluate existing policies and procedures for potentialareas of improvement. Technology CommercializationPerformed due diligence on a new gas-to-liquids (GTL) process to evaluate possible routes to commercialization. The workprogram included the following steps: verification of mass balance, comparison of laboratory and pilot plant yields, evaluation ofalternative technologies, assessment of scale-up issues, review of preliminary commercial design, estimate of capital costs, andthe development of an economic model that included sensitivity analyses for capital costs, yields, and prices. Substitute Natural Gas Market StudyDeveloped comprehensive market profile of SNG industry and market in North America, including operating and planned facilities,feedstock outlook, project incentives, and environmental issues. Pipeline Contamination DisputeAssisted in a claim involving an alleged y-grade/NGL pipeline contamination from a gas processing facility. Examined thefollowing key areas to evaluate the claim: pipeline hydraulics, laboratory records, chronology of pipeline sample data,reasonableness of claimed expenses, gas processing facility operation, and records. Gas Plant Explosion & Subsequent Insurance ClaimsAssisted resolution of claims between insurance company and Owners/Operators related to a gas plant explosion. Reviewed

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property damage and business interruption claims for accuracy and veracity. Project Cost Overrun DisputeFor a large sour condensate stripper facility, evaluated a significant project cost increase over the original estimate, taking intoaccount work scope changes, market escalation, the accuracy of the original estimate, and the impact of project delays. Anassessment was made of the reasonableness in each category and the likelihood of success with respect to cost recovery vialitigation proceedings from a technical standpoint. The project was designed and constructed during a period of rapidly escalatinglabor and material costs. Review Project Development CostsEvaluated multi-million dollar cost overruns of yearly operating budgets of a Central Asian consortium involved with the oil and gasdevelopment and production. Costs reviewed included Engineering Support, Operating Costs, Drilling Costs, and CapitalExpenditures. Gas Plant Emergency Shutdown Design AnalysisTo determine whether a system complied with key requirements, reviewed design of cryogenic gas plant emergency shutdownsystem in connection with a fire event to assess conformance with API RP 521 (Guide for Pressure Relieving and DepressuringSystems). Provided affidavit of merit pursuant to Texas Civil Practice Section 150.002. Natural Gas Gathering DisputesProvided expert report regarding claims involving natural gas measurement, prudent operations, natural gas pricing, surface estateissues, reasonable accommodations, and environmental considerations. Feasibility AssessmentDeveloped a feasibility study for a large, potentially stranded, natural gas discovery. Constructed an economic model to evaluatepotential options for gas monetization, including pipeline natural gas sales, gas-to-liquids (GTL), and liquefaction (LNG). Performedmarket assessments for the LNG and GTL products. Refinery Off-Gas Recovery ProjectProvided independent assessment and due diligence for a proposed refinery offgas treating facility in the USGC. Advised theclient on requirements related to schedule, documentation, and technology selection for project financing. Pipeline Pigging AccidentReviewed injury accident that occurred while pigging a gathering pipeline to remove formation water produced with natural gas.Provided an expert report regarding applicable industry standards regarding operation of vacuum truck for disposal of formation, aswell as observations regarding the contractual responsibilities of the tank truck operator and the production operator. Gas Producer Contractual DisputeProvided expert report and testified in federal bankruptcy court concerning disposal costs of produced salt water, reasonablenessof a farm-out joint venture agreement, costs of capital, and salvage value of production equipment. Gas Gathering and Treating Due DiligencePerformed due diligence of West Texas natural gas gathering and treating system. Reviewed contracts and facilities, assessedcompetition, developed economic model, and estimated market value of assets. Review Project Development CostsEvaluated multi-million dollar cost overruns of yearly operating budgets of a Central Asian consortium involved with the oil and gasdevelopment and production. Costs reviewed included Engineering Support, Operating Costs, Drilling Costs, and CapitalExpenditures. Gas Compressor Incident Dispute

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Provided expert opinions concerning a gas compressor failure insurance claim related to: (1) evaluating the gas processingfacilities' maintenance and standard of care practices compared to industry standards; and (2) reviewing the operating practicesand programs utilized at the facility to determine if these practices caused or contributed to the incident and subsequent damage. Gas Treating Facility Explosion InvestigationInvestigated cause of system overpressure and shutdown of downstream pipelines which led to flange gasket failure and fire. Reviewed system design, construction, and overpressure protection at wellheads located upstream to determine cause of failure. Review Infrastructure AssetsAssisted client in evaluating infrastructure spending to support ongoing operations and maintenance activities. Our reviewevaluated whether the infrastructure assets were integral to the overall technological complex. Condensate Gathering System Due DiligenceAssisted client with engineering due diligence on a Texas condensate gathering system focusing on pipeline mechanical integrityissues. Settlement HearingTestified on a dispute between an independent producer and a processor regarding the fairness of a proposed natural gasprocessing agreement in the Fort Worth Basin. Supply Contract DisputeAssisted in breach of contract claims regarding a helium supply agreement from a large natural gas processing/treating complex. Analyzed historical operation and performance of processing and extraction facilities, including sources and composition of gassupplies, plant shutdowns, and plant turndown capabilities. Reviewed plant performance, including operating costs, efficiencies,and operating modes to support defendant's plant operations. LNG Project DevelopmentCommercial responsibility for the upstream development of a number of non-operated gas fields associated with a world-scale LNGproject. Involved in numerous gas purchase and sale agreements associated with managing the project’s upstream gas portfolioahead of first LNG in 2015. Joint-Operating Agreements Responsible for joint venture management with a mandate to ensure operator compliance within operating agreements (JOAs). Responsible for overseeing non-operator audits with a goal to bring about greater operator accountability and transparency. Project ManagementExecuted several mid-to-large pipeline and facility projects in multiple international locations, overcoming challenging cultural andlanguage differences. Performed feasibility studies, detailed design, procurement, construction, inspection, hydrotesting, riskassessments, and pipeline integrity. CTL/GTL Question-Answer SessionPresented background information to groups of stock research analysts in New York and Boston on the technologies utilized ingas-to-liquids and coal-to-liquids processes. In addition, the economics of gasification projects in the U.S. and the role of publiclytraded companies in GTL and CTL was discussed. Gas Plant Fire Damage Repair CostsAssessed fire-related damages and estimated rebuild cost for a cooling tower at a gas plant. Gas Plant Construction DisputeProvided expert advice with respect to standard and customary practices of gas plant design and construction.

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Pipeline Pigging Incident InvestigationFollowing a plant incident caused by the ingress of water, we investigated upstream pipeline activities and operating records todetermine the root cause of the incident. Engineering & Construction - Liquidated Damages DisputeReviewed claim relating to assessment of liquidated damages and inadequate delivery of Operating Manuals. Petroleum Revenue Override DisputeReviewed contract, evaluated contract terms and key definitions and analyzed royalties related to a large West African oil, gas,LNG and petrochemical complex. LNG Liquefaction Capital and Operating CostsOn behalf of a confidential client with a proposed world-scale LNG liquefaction plant, prepared high-level cost estimates for twophases of the project: 1) the engineering, procurement, and construction (EPC) phase and, 2) the operating phase. Provided costdata for client’s financial model to help assess the risks and viability of the project. Gas Plant Construction DisputePrepared expert report for AAA arbitration regarding alleged deficiencies by the EPC contractor relating to compliance withrecognized and generally accepted good engineering practice (RAGAGEP) for adherence with OSHA requirements. Multipleissues, including control room safe location, electrical area classification, positive material identification, process hazard analysis,metallurgy selection, and building ventilation design were addressed. Flare Tower Design ReviewIndependently reviewed the design of two flare towers for an LNG onshore facility. Commented on the EPCM contractor'sresponsibilities to review the work product of subcontractors and vendors. Natural Gas Midstream Due DiligenceConducted due diligence on gas gathering assets in East Texas for a prospective purchaser. Inspected facilities, reviewed pipelineand facility construction records, confirmed regulatory status, evaluated pipeline integrity management program, and assessedprocess safety. GTL Technology and Cost EvaluationEvaluated the technology, cost estimate and financial model for a small scale GTL project to convert natural gas to liquid specialtyproducts. The project evaluation included a review of the synthesis gas process, Fischer-Tropsch (FT) reactor technology, productrecovery and product separation. The project definition and stage of development were evaluated for technology risk, cost estimaterange of accuracy and suitability of the financial model assumptions. GTL Jet Fuel Scoping StudyOn behalf of a major airline, assessed the risks and benefits involved in entering into either a jet fuel off-take agreement, orparticipating in project ownership. The assessment, for a number of small-scale GTL technology providers, covered the followingtopics: state of technology development; technical risks for project completion; likely capital costs, yields, and operating costs;market price analysis for crude oil and natural gas; and economic sensitivity analyses. Midstream Infrastructure ReviewCompleted a high-level review of natural gas and natural gas liquid (NGL) infrastructure in Western Oklahoma for a projectdeveloper to present to a potential investor. LNG Due DiligenceOn behalf of potential offtakers and equity investors of train one, performed a technical due diligence and risk assessment of atwo-train liquefaction project, including common use of certain existing regasification facilities. Work completed during the

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development phase of the project involved the evaluation of pre-completion risks and post-completion risks, including a review ofplanned and existing facilities. CAPEX, contractor capabilities, construction schedule duration, and OPEX were reviewed forappropriateness and risk of overrun. Subsequent follow-up work included a review of an Open Book Estimate (OBE), a project riskevaluation (reviewed and quantified pre-FID and post-FID cost and schedule risk), and an assessment of the project’s draftenvironmental impact statement (EIS). Propane Pricing AnalysisEvaluated the historical development of propane prices in a key North American market, and developed a report that assessedpropane supply-demand dynamics and price response, given the increasing availability of supply. Evaluated the evolution ofcompany price postings and compared independently-assessed, third party prices to these postings. Provided opinions on the bestpropane price reference points to be used in commercial supply contracts. Gas Plant Due DiligenceOn behalf of a developer's due diligence process, provided an independent review of a gas plant project in the U.S. Revieweddocuments and consulted with the developer regarding the process design, engineering, major systems and equipment,procurement, construction, schedule and CAPEX. LNG Capital Cost ReviewOn behalf of potential offtakers and equity investors of one train, Baker & O’Brien performed a follow-up review of the updatedOpen Book Estimate (OBE) of a two-train liquefaction project, including common use of certain existing regasification facilities. Gas Plant Acquisition DisputeAfter concluding a transaction, the acquiring party claimed that the facilities were not sufficient to conduct business due todeficiencies related to design, construction, safety, and failure to meet environmental regulations. Visited the plant to interview keypersonnel, viewed the physical facilities, and reviewed relevant operational, safety, and engineering design information. Ourfindings and opinions were presented in an expert report which was submitted into evidence. Oil Disposition StudyDeveloped economics of crude disposition alternatives for producer's growing production of light tight oil. Alternatives includedlocal and distant refining values with appropriate logistics costs. GTL Technology AssessmentAssisted company in evaluating a larger equity investment in a GTL technology company by visiting the prototype unit, reviewingprocess data, and assessing the potential market. GTL Commercialization StudyPerformed due diligence on a new GTL process to evaluate possible routes to commercialization. The work program included thefollowing steps: (1) verification of mass balance; (2) comparison of laboratory and pilot plant yields; (3) evaluation of alternativetechnologies; (4) assessment of scale-up issues; (5) review of preliminary commercial design; (6) estimate of capital costs; and (7)the development of an economic model that included sensitivity analyses for capital costs, yields and prices. Gas Plant Mediation SupportProvided mediation support in relation to a helium supply agreement dispute. GTL Facility Due DiligencePerformed due diligence for a company evaluating an equity investment in a GTL facility under construction. Reviewed projectbudget and schedule for completion. Evaluated the amount of contingency included in the budget, confirmed the status ofpayments to contractors and other service providers, and interviewed project representatives regarding mechanical completion andcommissioning plans.

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LNG Technical AdvisorProvided technical support regarding the FERC filing process, reviewed FEED study deliverables from contractors, and advisedwith regard to other contracts in support of the project, including geotechnical issues, noise survey, vapor dispersion, etc. Alsoreviewed progression and risks involved in estimates of project CAPEX and OPEX. Gas Plant Construction DisputePrepared expert report and testified regarding alleged performance deficiencies of a general mechanical contractor performing areimbursable construction project. The project allegedly experienced poor productivity, resulting in cost overruns and scheduledelays. Assessed the different potential causes of alleged poor productivity, including project management, scope changes andweather impacts. EPC Construction DisputeProvided expert support in a construction dispute relating to a natural gas processing plant in North America. The dispute primarilyconcerned engineering design issues and whether the installed facilities met contract, specification, and industrial standardrequirements. Gas Pipeline DisputeAs a member of the three person dispute resolution board for a gas pipeline construction project, reviewed, evaluated, anddetermined liability for project claims brought before the board. Pipeline Pig Station Incident InvestigationReviewed information concerning a fire associated with the commissioning of a pipeline station and equipment skid. Purpose wasto assess cause and origin for the incident and roles and responsibilities of the operating company and equipment supplierassociated with the project. GTL Technology AssessmentProvided a fatal flaw analysis, evaluated the technology application and integration, reviewed the cost estimate accuracy range,and assessed the financial model for a natural gas to wax proposed project. Particular emphasis was placed on the ability toscale-up the process, the assumptions for plant capacity and availability, and the project schedule. Insulation Works DisputeProvided expert witness assistance with technical issues regarding the installation of insulation on an LNG facility. Baker & O'Brienreviewed the technical issues, prepared an expert report, and testified regarding our opinions in an ICC Arbitration hearing. Lender's Engineer - GTL PlantServed as Independent Engineer on behalf of a major Australian bank for the construction of a GTL plant. Prepared a technologyassessment, analyzed feedstock supply, and reviewed contracts. Inspected equipment and confirmed permits were in place priorto authorizing draw-down certificates. Monitored construction progress, confirmed expenditures, and compared these expendituresagainst budget. GTL Facility Due DiligencePerformed due diligence for a company evaluating an equity investment in a GTL facility under construction. Reviewed projectbudget and schedule for completion. Evaluated the amount of contingency included in the budget, confirmed the status ofpayments to contractors and other service providers; interviewed project representatives regarding mechanical completion andcommissioning plans. Natural Gas Measurement DisputeAssisted client with a "Discovery Request" regarding measurement of shale-play natural gas from a field meter. Reviewedaccounting records, photos, and meter specifications to determine if consistent with industry standards for measuring natural gas.

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Propane Quality ReviewReviewed claims regarding a propane quality dispute between a supplier at a new terminal and a retail distributor. Reviewedpropane quality test results and bills of lading to compare actual versus reported quality. We provided technical findings to clientand assisted in getting the matter settled. Construction Dispute - Gas Processing PlantDispute involving delay and disruption, welding, and testing during gas plant debottlenecking project. Contractor claimed thatmultiple owner changes had resulted in significant additional costs, including delay. Owner claimed that the costs resulting fromthe changes were previously paid and that the delay in completion was due to the contractor’s poor management of the project. Project Feasibility - LNG On behalf of the major oil company project sponsor, prepared a capital cost estimate for a proposed world-scale, “grassroots”liquefaction plant. The cost estimate was used to evaluate competing Front-End Engineering and Design (FEED) technologypackages from engineering, procurement, and construction (EPC) contractor/licensors. LNG Due DiligenceProvided technical support to the sponsor of a multi-train liquefaction project. The scope of work included: preparation of atechnical due diligence report; in-depth review of the Open Book Estimate (OBE), schedule, and project execution plan;assessment of the EPC contractor’s capabilities and experience; high-level review of geotechnical issues; assistance in thedevelopment of an Operating and Maintenance (O&M) plan; input into the formation of sponsor’s project management team; andinput into the development of owner’s costs, including appropriate levels of cost and schedule contingency. Provided support to thesponsor with EPC contract negotiations.

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GAS PROCESSING