EXPERT WITNESS AND DISPUTE SUPPORT - Property Damage and Business Interruption Insurance Claims

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EXPERT WITNESS AND DISPUTE SUPPORT - Property Damage and Business Interruption Insurance Claims
EXPERT WITNESS AND DISPUTE SUPPORT
                                        Property Damage and Business Interruption Insurance Claims

     Baker & O'Brien consultants are frequently retained as consulting or testifying
     experts and have been qualified to offer evidence in many insurance-related matters
     involving the oil and gas, chemicals, and power generation industries. Services to
                                                                                             RELATED INDUSTRIES
     the insurance industry include: (a) asset valuation for determining insurable values;   Additional Process Industries
     (b) forensic investigations to determine cause and liability; (c)property damage and    Gas Processing
     cost to rebuild estimates; (d) business interruption claims due to accidents or other   Oil and Gas Production
     unscheduled downtime; (e) estimates of loss incurred during the transportation,         Petrochemical / Chemical
     storage, and processing of oil or gas; and (f) technical assistance in the claim        Petroleum Refining
     adjustment process. Our insurance industry clients have included some of the            Power Generation
     largest underwriters and brokerage houses in the world.                                 Renewable / Alternative Energy
                                                                                             Transportation and Storage

© 2021 Baker & O'Brien, Inc. All rights reserved.                                                                             1 of 10
EXPERT WITNESS AND DISPUTE SUPPORT - Property Damage and Business Interruption Insurance Claims
EXPERT WITNESS AND DISPUTE SUPPORT
                                        Property Damage and Business Interruption Insurance Claims

     PRIMARY CONTACTS

                                 Daniel R. Finelt
                                 Consultant
                                 Houston

                                 Peter W. Halliday
                                 Vice President
                                 Dallas

                                 Charles J. Hirst
                                 Senior Vice President
                                 Dallas

                                 David C. Tamm
                                 Senior Vice President
                                 Houston

© 2021 Baker & O'Brien, Inc. All rights reserved.                                                    2 of 10
EXPERT WITNESS AND DISPUTE SUPPORT - Property Damage and Business Interruption Insurance Claims
EXPERT WITNESS AND DISPUTE SUPPORT
                                        Property Damage and Business Interruption Insurance Claims

     RELATED EXPERIENCE
        Ammonia Plant Construction Insurance Dispute
        Evaluated the technical basis for a ammonia plant insurance claim involving construction defects and warranty work. Inspected
        the plant, evaluated project records, and reviewed maintenance records.
        Business Interruption Damages Claim by Concrete Supplier
        Provided an expert consultant business interruption loss estimate for damages to a concrete products producer as a result of an
        incident at an oil refinery.
        Chemical Plant Business Interruption Claim
        Analyzed the impact of a major equipment fabrication error on a chemical plant business interruption (BI) claim including schedule
        delay and financial impacts.
        Business Interruption Claim and Root Cause Analysis
        Monitored rebuild engineering and construction of facilities damaged by fire and offered expert opinion on the appropriate
        construction period for the business interruption claim. Participated in the incident root cause analysis.
        Chemical Plant Insurance Claim Support
        Provided comprehensive technical and accounting support for a property damage claim settlement and analysis for a chemical
        manufacturing plant that was damaged during a hurricane. Work included review of all repair cost estimates and invoiced repair
        invoices, as well as analysis of claimed damages discovered and submitted post-recovery. Assistance was also provided during
        final claim settlement negotiations.
        Crude Oil Processing Contract Dispute
        Served as expert witness concerning a dispute between an international oil trading company (Trader) and an independent refining
        company (Refiner), between whom there was a crude oil processing contract. The Trader alleged that the Refiner misappropriated
        products to its own account. Analyzed the refinery production and product disposition under each processing deal over a period of
        three years and calculated the damages under the alleged misappropriation. Prepared an independent detailed damages claim for
        insurance purposes and defended the claim at trial.
        Defective Product Lawsuit
        Provided an expert report concerning a dispute between a pressure safety relief device manufacturer and an operator of a claim
        that a device did not operate as designed in a reactor overpressure incident.
        Gas Pipeline Rupture Dispute
        Performed an independent assessment of the costs incurred, including the lost natural gas inventory, on a ruptured interstate gas
        transmission line for which the owner requested a multi-million dollar damage reimbursement. A report was prepared for mediation
        which resulted in a negotiated settlement.
        Gas Turbine Damage
        Assisted in a root-cause analysis and damages dispute concerning a major turbine failure in the start-up of a power plant.
        Hurricane Rita Claim
        A petrochemicals facility experienced a loss of steam supply from an outside steam supplier and a subsequent unscheduled
        shutdown which, in turn, resulted in production losses and major damage to the facility. The steam supplier attributed the steam
        outage to boiler damage caused by a hurricane, which had made landfall several months earlier. Assisted by investigating the link
        between the hurricane and the steam supplier boiler outages.
        Incident Analysis - Petrochemicals
        Performed an investigation analysis following fire and explosion incidents at a major Gulf Coast manufacturing facility. The

© 2021 Baker & O'Brien, Inc. All rights reserved.                                                                                            3 of 10
EXPERT WITNESS AND DISPUTE SUPPORT - Property Damage and Business Interruption Insurance Claims
EXPERT WITNESS AND DISPUTE SUPPORT
                                        Property Damage and Business Interruption Insurance Claims

        Performed an investigation analysis following fire and explosion incidents at a major Gulf Coast manufacturing facility. The
        engagement entailed development of the sequence of events, root cause analysis, assessment of the decision to rebuild, and
        reconstruction monitoring. An independent project schedule and cost estimate for the plant reconstruction was developed.
        Insurance Arbitration
        Investigated the circumstances surrounding an oil spill at a Gulf Coast refinery following a hurricane. Work focused on whether the
        refiner acted as a "prudent operator" before and after the hurricane and whether the owner was entitled to a claim for damages
        based on an insurance policy's pollution exclusion clause. Prepared a written report for submission into evidence in an
        international arbitration.
        Refinery Environmental Contamination Insurance Litigation
        Provided expert witness testimony and analysis regarding liability and damages for petroleum refinery environmental
        contamination insurance claims across the U.S. based on the multiple insurance contracts for each site.
        PVC Plant Litigation
        Assisted in a dispute concerning allegations that an explosion at a major manufacturer of PVC resins was due to a poor process
        design that failed to meet government regulations and engineering standards. Assisted in discovery, inspected the plant,
        evaluated procedures and work methods, reviewed applicable standards, and reviewed operating records.
        Supply and Distribution
        Assisted in a dispute concerning the effects of Hurricanes Katrina and Rita on jet fuel prices for the Gulf Coast market. The
        sequence of events and impacts on individual suppliers were developed, as well as an allocation of outages and price differentials
        attributable to each hurricane. Our analysis of pricing activity also considered estimates of normalized versus event-based price
        movements in the overall market.
        Subsea Pipeline Rupture
        Assisted attorneys in investigating the circumstances surrounding a rupture of a subsea crude oil pipeline caused by a vessel
        dragging an anchor. This assignment included a review of the impact on crude oil gathering system and receiving terminal
        operations, the owner's emergency response, subsea pipeline repair costs, and a determination of the maximum insurable loss.
        Refinery Business Interruption
        Prepared detailed analyses of property damage, business interruption, and demurrage claims resulting from a vessel allision with a
        refinery dock.
        Root Cause Analysis
        Conducted a Root Cause Failure Analysis on a high pressure steam turbine that failed following a planned outage at a
        cogeneration power plant. Evaluated outage work procedures, actual outage work undertaken, start-up monitoring results, and
        post-failure turbine inspection results on turbine disassembly.
        Refinery Business Interruption
        Determined the economic damages suffered by a refiner as a result of multiple incidents which eventually led to reduced feed to
        the refinery. Project required the analysis of all refining units, including their actual and planned operations and maintenance.
         Alternative utilizations of feedstock and supply of products were also investigated.
        Polyolefins Plant Explosion
        Assisted attorneys and company in preparation for litigation and negotiation with government agencies while investigating the
        cause of an explosion which caused the death of over 20 people. Assisted risk management in preparing and negotiating property
        damage and business interruption claims in excess of $1.3 billion.
        Polypropylene Manufacturing

© 2021 Baker & O'Brien, Inc. All rights reserved.                                                                                             4 of 10
EXPERT WITNESS AND DISPUTE SUPPORT - Property Damage and Business Interruption Insurance Claims
EXPERT WITNESS AND DISPUTE SUPPORT
                                        Property Damage and Business Interruption Insurance Claims

        Assisted in a dispute concerning insurance claims for property damage and business interruption in connection with a reactor
        incident during construction of a production facility.
        Refining Market Forecast
        Investigated business interruption claims from fuels refineries, lube refineries, cement plants, fuels distributors, and chemicals
        manufacturers due to the closure of marine access following the release of oil into the waters surrounding the plants.
        Gas Plant Explosion & Subsequent Insurance Claims
        Assisted resolution of claims between insurance company and Owners/Operators related to a gas plant explosion. Reviewed
        property damage and business interruption claims for accuracy and veracity.
        Crane Accident Claim Analysis
        Analyzed business interruption and property damage insurance claim by a refinery operator resulting from a crane accident. This
        included analysis of the cost to repair the physical damage from the accident, the impact to schedule and cost of a process unit
        turnaround that was in progress at the time of the accident, and valuation of lost production due to the accident.
        Oil Field Pipe Dispute-Insurance Claim
        Reviewed a claim involving an insurance dispute relating to proper preservation of drilling pipe in a storage yard following a
        hurricane.
        Refinery Explosion, Subrogation of Insurance Claim
        Assisted in a dispute concerning a rebuild estimate, which was the subject of subrogation, for an oil refinery process plant
        damaged by an explosion.
        Review Insurance Claim
        Reviewed a petroleum refinery business interruption insurance claim resulting from a dock closure because of an oil spill.
        Plant Commissioning Review
        Provided initial guidance and comments regarding the development of a commissioning and start-up schedule for a polypropylene
        plant. Provided initial input into how plant start-up incidents affected the commissioning schedule.
        Gas Compressor Incident Dispute
        Provided expert opinions concerning a gas compressor failure insurance claim related to: (1) evaluating the gas processing
        facilities' maintenance and standard of care practices compared to industry standards; and (2) reviewing the operating practices
        and programs utilized at the facility to determine if these practices caused or contributed to the incident and subsequent damage.
        Hurricane Damage Insurance Dispute
        Assessed the impact of a hurricane to a refinery and its impact on turnarounds being executed at residue upgrading process units.
         Support included investigating failures incurred to a flare and to a heater, their relationship to the hurricane, and subsequent
        shutdowns of process units.
        Shipyard Insurance Claim Analysis
        Assessed a business interruption claim filed by a shipyard that resulted from a third-party incident. Based upon our analysis of the
        claimant's business operations and performance, claim estimates were developed that formed the basis for settlement
        negotiations.
        Refinery Fire Damage Assessment and Rebuild Costs
        Assisted in a dispute concerning fire damages and estimated rebuild costs at a petroleum refinery, as well as monitored the
        rebuild project.
        Gas Plant Fire Damage Repair Costs
        Assessed fire-related damages and estimated rebuild cost for a cooling tower at a gas plant.

© 2021 Baker & O'Brien, Inc. All rights reserved.                                                                                              5 of 10
EXPERT WITNESS AND DISPUTE SUPPORT - Property Damage and Business Interruption Insurance Claims
EXPERT WITNESS AND DISPUTE SUPPORT
                                        Property Damage and Business Interruption Insurance Claims

        Petrochemicals Business Interruption Claim
        Assisted in a dispute concerning a petrochemicals business interruption claim and lawsuit after a declaration of force majeure by a
        manufacturer.Reviewed pertinent data and prepared written reports, affidavits, and deposition regarding the business interruption
        claims.
        Fuel Contamination Investigation
        Investigated an occurrence of contaminated diesel fuel at a mine facility, as well as the claimed property damage and business
        interruption claims. Assessed the root cause of the fuel contamination and prepared a presentation of our findings.
        Dock Collision Business Interruption Claim
        Assisted in a dispute concerning a refinery business interruption claim and lawsuit after a marine vessel allision with a refinery
        dock. Analyzed need for extraordinary refined product marine and pipeline movements, as well as trading activity and demurrage
        claims.
        Pipeline Pigging Incident Investigation
        Following a plant incident caused by the ingress of water, we investigated upstream pipeline activities and operating records to
        determine the root cause of the incident.
        Terminal Hurricane Damage Repair and Claim
        Assisted in a dispute concerning a rebuild estimate for a terminal damaged by a hurricane.
        RFCC Arbitration Expert Report
        Arbitration expert witness opinion on residual fluid catalytic cracking (RFCC) operations, prudent operating procedures, and force
        majeure claims related to an RFCC incident.
        Sulfuric Acid Plant Fire Investigation
        Investigated cause for sulfuric acid plant fire. Reviewed plant operating conditions prior to the fire and the unit design to identify the
        cause and potential contributing causes to the fire and subsequent explosions.
        Refinery Business Interruption - Marine Spill
        Conducted an assessment of business interruption damages stemming from downtime caused by an oil spill which disrupted
        marine traffic at several adjacent manufacturing facilities.
        Coker Incident and Design Assessment
        Reviewed project management procedures and facilities design of an oil refinery project after a subsequent structural failure.
         Provided written report and oral deposition regarding design responsibility and failure liability.
        Power Transmission Fire Investigation
        Investigated the cause of major fire that resulted in a fatality.
        Heat Exchanger Failure Investigation
        Investigated circumstances concerning a heat exchanger failure that resulted in a fire and explosion, fatally injuring several
        employees. Investigation included evaluating relevant operating records and comparing these with design specifications to
        evaluate whether exchanger was operated, inspected and maintained in accordance within design parameters and industry
        practices. Prepared expert report.
        Tank Truck Fatality Incident
        Provided inspection of truck tank and tank cleaning facilities related to a fatality accident. Investigation including collecting samples
        of tanker contents for further testing.
        Undersea Pipeline Damage Repair Costs
        Assisted client by providing opinion on reasonableness of claimed repair costs to an undersea pipeline damaged by a ships's

© 2021 Baker & O'Brien, Inc. All rights reserved.                                                                                                    6 of 10
EXPERT WITNESS AND DISPUTE SUPPORT
                                        Property Damage and Business Interruption Insurance Claims

        anchor.
        Refinery Business Interruption Assessment
        Estimated the lost profit (business interruption claim) stemming from a contractor incident which caused an extended refinery
        outage.
        Hydrogen Sulfide Incident Investigation
        Following a fatality caused by exposure to hydrogen sulfide at a crude oil storage tank with a known sour gas atmosphere,
        investigated the causes for the incident and the operating and maintenance practices (standard of care) with respect to:
        supervision, training, and use of personal protective equipment.
        Confined Space Incident and Dispute
        Provided support in a wrongful death dispute regarding a confined workspace incident. The incident involved nitrogen
        asphyxiation where two maintenance contractors died. Investigated the cause and origin of the incident, including work procedures
        and practices.
        Contractor Tripping Incident
        Investigated circumstances concerning the personal injury of a contract employee. Provided opinions regarding general safety
        requirements, industry practices, contractor training and safety expertise and utilizing contractors for the activity being performed.
        Storage Tank Spill Incident
        Developed an expert witness report associated with a spill from a sour naphtha storage tank. Reviewed numerous documents
        and depositions to develop opinions associated with the event. Provided expert opinions on the standards of care and operation of
        a petroleum refinery.
        Valve Failure Investigation: Herbicide Plant
        Investigated the design and operations of a batch reactor process for the manufacture of herbicides in relation to a piping failure.
         Equipment material of construction was the focus of the analysis.
        Chemical Plant Fire Repair
        Provided technical advice and consultation for recommended repair procedures for vessels and piping damaged in a chemical
        plant fire.
        Fall-Related Injury Investigation
        Investigated circumstances concerning the personal injury of a contract employee who fell inside a flue gas system during a
        refinery turnaround. The investigation included evaluation of: (1) refinery safe work practices compared to industry standards; (2)
        utilization of fall arrest systems to mitigate the presence of fall hazards; (3) the responsibilities of both operating companies and
        contractors to recognize and develop plans to mitigate fall hazards; and (4) responsibilities of both parties to execute and
        communicate turnaround work plans.
        Stainless Steel Braided Hose Failure
        Provided technical expert witness assistance in dispute concerning the failure of a braided stainless steel hose in a medical facility.
        Storage Tank Foundation Failure
        Following the failure of a storage tank foundation, we reviewed the applicable documentation and prepared an affidavit concerning
        the standard of care used during its construction.
        Debutanizer Tower, H2S Incident
        Developed an expert witness report associated with an incident concerning an H2S release during the scheduled turnaround
        activities involving a debutanizer tower.
        Refinery Economic Losses Due to Fire

© 2021 Baker & O'Brien, Inc. All rights reserved.                                                                                             7 of 10
EXPERT WITNESS AND DISPUTE SUPPORT
                                        Property Damage and Business Interruption Insurance Claims

        Prepared an assessment to quantify the economic damages resulting from a refinery fire that caused damage to equipment and a
        lengthy shutdown of a refinery distillation and conversion train. Prepared a detailed report that documented both business
        interruption losses and repair costs for damaged equipment. Provided testimony in deposition and district bench trial.
        Ethanol Plant Business Interruption Dispute
        Reviewed an insurance claim for an ethanol plant "opportunity loss" due to a power outage resulting from repair work on main
        electrical feed cables after being damaged by a construction contractor. Reviewed operating expenses and ethanol pricing during
        the subject period and provided an opinion on the reasonableness of the size of the claim.
        Marine Dock Business Interruption Claim
        Reviewed documents and provided analysis concerning a marine collision with the crude oil unloading dock, which resulted in a
        business interruption claim for a Gulf Coast refiner.
        Refinery Business Interruption Claim
        On behalf of an insurer, calculated the business interruption expense for a Gulf Coast refinery associated with a delay in receiving
        crude oil via ship. Reviewed calculations provided by the refinery and opined on associated business interruption impacts
        associated with the delay in receiving crude oil shipments. Provided an expert report, which enabled a settlement in the dispute.
        Refinery Business Interruption Claim
        Provided technical support for a business interruption claim associated with a refinery fire. Evaluated refinery linear program
        model used to develop the "but for" cases. Prepared a report with recommended corrections to the linear program model "but for"
        case output.
        Business Interruption Claim Analysis
        Reviewed preliminary business interruption calculations related to a ship collision incident at a refinery dock. Developed a revised
        business interruption estimate, which resulted in a claim settlement.
        IPP/Refinery Power Generation Outage Dispute
        Assessed the cause(s) of supplier's steam and electricity generation failure and mitigating actions by the refinery/petrochemical
        customer. Preliminary findings and a document request were provided to the client.
        Refinery Construction Dispute
        Provided expert consulting support assessing EPC contractor’s responsibilities, project execution, and start-up issues associated
        with the construction and start-up of a refinery expansion project. Assisted client in two areas: (1) assessed circumstances
        associated with a piping failure to determine if failure was due to poor engineering design; and (2) organized retained materials to
        assist with insurance claim.
        Explosion Insurance Claim
        Provided report presenting a reasonable timeline and duration to source, contract, start, and conduct the demolition of the parts the
        Gas Plant damaged after the plant experienced a fire and explosion.
        Ammonia Plant Failure Investigation
        Assisted in evaluating a series of insurance claims centered around separate events to determine a proximate cause. Work
        included reviewing design and operating records for a worldscale ammonia plant. Each of the events resulted in claims
        for property damage and business interruption. Prepared an analysis and report that evaluated the root cause for each of the
        events and whether the events were connected by a chain of causation.
        Electrostatic Precipitator Explosion
        Investigated the cause and origin of an explosion in an electrostatic precipitator used in a cement manufacturing plant that was the
        subject of an insurance claim. Reviewed operating records for temperatures, pressures, and flow rates through a rotating cement

© 2021 Baker & O'Brien, Inc. All rights reserved.                                                                                               8 of 10
EXPERT WITNESS AND DISPUTE SUPPORT
                                        Property Damage and Business Interruption Insurance Claims

        kiln. Evaluated operation of the electrostatic precipitator for anomalies prior to the explosion. Concluded that the cause and orgin
        related to a mechanical failure in the kiln. Provided findings to the owner and its insurer and supported decisions regarding
        coverage and subrogation issues.
        Refinery Incident CLaim
        Assisted in the investigation of a refinery leak and fire. Coordinated the collection of information related to the incident and
        disseminated it to the relevant parties. Helped audit incident related retained materials and developed inventory documentation.
        Ethylene Plant Construction Dispute
        Opined on the reasonable period of time for the completion phase of a rebuild project after a fire during an expansion project.
        Commented on the implementation of relief system changes during the rebuild to be in compliance with standards and codes.
        Marine Dock Damage Insurance Claim
        Analyzed the business interruption insurance claim of petroleum product terminal that was impacted by marine dock damage
        caused by the collision of an arriving ship. Provided advice regarding potential mitigations concerning the terminal’s product
        movements.
        Insurance - Sugar Mill: Lost Production Claim
        A steam-driven turbo-generator in a sugar mill failed, causing loss of production. There was a dispute between the mill owner and
        its insurer concerning the physical damages and the business interruption losses. We were engaged to evaluate the claim.
        Tank Collapse Dispute
        Investigated the cause of a tank collapse that occurred during cleaning activities in preparation for a planned internal inspection.
         Assessment included evaluating: (1) condition of the tank prior to the incident; (2) work processes utilized by contractor
        performing tank cleaning; (3) maintenance and inspection practices of tank operator; (4) industry accepted practices for tank
        inspection; and (5) contributing causes that led to the incident. Baker & O'Brien also assessed the cost to clean the tank and
        perform repairs following the incident. Developed expert report and provided support through mediation and settlement efforts.
        Hurricane Product Shortage Claim Assessment

     Assessed a product shortfall by a chemical producer following Hurricane Harvey. Provided
     volume and revenue estimates, taking into consideration port closures and the timing of
     force majeure declarations.
           Refinery Power Failure

     A power supply failure at a refinery resulted in a complete and extended outage of the
     refinery, as well as long-term impacts to refinery operation. Opined on the duration of the
     outage, the refiner’s actions, and refinery procedures during the restart effort with respect to
     typical refinery restart efforts. Also calculated the economic damages suffered by the
     refinery as a result of the power outage.
           Insurance Support: Liability and Business Interruption

     Assessed the merits of a liability claim and business interruption claim associated with an
     equipment failure in a sulfuric acid regeneration facility. Advised on the value and key
     determinants of a business interruption claim.
           Personal Injury Liability Investigation
           Investigated a personal injury claim following a petroleum refinery process incident. Provided expert opinions on refinery

© 2021 Baker & O'Brien, Inc. All rights reserved.                                                                                              9 of 10
EXPERT WITNESS AND DISPUTE SUPPORT
                                        Property Damage and Business Interruption Insurance Claims

           Investigated a personal injury claim following a petroleum refinery process incident. Provided expert opinions on refinery
           conformity with the latest available industry technology, regulations, standards, and practices.

© 2021 Baker & O'Brien, Inc. All rights reserved.                                                                                       10 of 10
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