renewable / alternative energy related …...reviewed and critiqued plant design for prospective...

Baker & O’Brien has advised the oil and gas industry on renewable energy sourcesincluding biomass, ethanol, wind power, and biodiesel projects. Our experienceincludes analyzing renewable fuel standards and its effect on the industry, theevaluation and application of technologies, product market studies, and supportinglenders in project development. In the gas-to-liquids industry, Baker & O’Brienprovides assessment of the technology risks, technical risks, and risk mitigationstrategies to owners, lenders, and off-takers. We have evaluated gasification,reforming, syngas cleanup, Fischer-Tropsch processes, and product treatment for theproduction of gasoline, jet fuel, naphtha, base oils, and wax. Our work includesanalysis of yields, scale-up, cost estimates, estimating techniques, and estimate rangeof accuracy.

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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

Gary N. DevenishConsultantHouston

Peter W. HallidayVice PresidentDallas

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RENEWABLE / ALTERNATIVE ENERGY

RELATED EXPERIENCEEthanol Impact on Refinery MarginsAssessed the impact to U.S. refining margins that would likely result from aggressive growth in ethanol production in the U.S. Thestudy examined the likely distribution of ethanol by PADD under an aggressive ethanol growth scenario, the resulting gasolinesupply and demand balances, and the consequent impact on margins over a 10-year period. Ethanol Supply and Demand StudyStudied and presented the effects of ethanol supply and demand scenarios on regional gasoline supply and demand for a smalldomestic refiner. Ethanol Supply Demand Evaluation & Pricing ForecastPrepared an evaluation of ethanol manufacturing business for a U.S. company considering major capital investments to enter thatbusiness. Developed an analysis which included ethanol supply/demand projections for key gasoline markets, forecasts of futureethanol pricing within those markets, and key sensitivities. Ethanol Terminal Blending Facility EvaluationOn behalf of a private equity firm, reviewed a site development plan for a coastal ethanol receiving terminal and associatedgasoline blending facility. Evaluated the market competition for terminalling services within the local area. Evaluate Biodiesel Production FacilityProvided due diligence review of a biodiesel facility in support of project financing. Reviewed capital costs, operating costs, processtechnology, and maintenance requirements. Evaluate Biodiesel Technology and Plant DesignReviewed and critiqued plant design for prospective biofuels production facility. Evaluate Biodiesel Technology Development and Scale-UpAssessed the technology development and commercialization plan for a biodiesel production hydroprocessing facility. Ourconclusions helped provide the basis for the formation of a joint business venture to construct and operate a world-scale biodiesel

Aaron J. ImrieConsultant, Recruiting ManagerDallas

Kevin P. MilburnConsultantHouston



plant. Gasoline Spill LitigationAssisted in a dispute between a retail marketer and contractor concerning allegations that contractor's work contributed to agasoline spill from a retail gas station that contaminated the well water of 130 homes. Assisted in discovery, evaluated themechanical integrity of equipment, examined unique theories of causation, inspected site, and attended destructive testingprocedures. GTL Diesel Blending StudyPerformed several diesel blending studies in different refinery configurations using PRISM to calculate the Green House Gasbenefits of using GTL diesel as a potential blendstock. Isobutanol Valuation StudyIn order to assess the potential value of isobutanol as a gasoline blending component, performed simulations of refinery operationsat a select group of West Coast refineries to calculate isobutanol value relative to blending ethanol into gasoline. RFS Infrastructure StudyPrepared a report for the American Petroleum Institute (API) that analyzed the potential logistics and infrastructure bottlenecks ona year-by-year basis to 2012 that could result from the industry trying to meet the Renewable Fuel Standard from the EnergyIndependence and Security Act of 2007. Refining Industry OverviewProvided guidance as to opportunities within the U.S. petroleum fuels market for blending isobutanol. Developed a list of targetrefineries for blending of isobutanol into gasoline. Provided isobutanol gasoline blend valuations versus ethanol for several Midwestrefineries. U.S. Gulf Coast Isobutanol StudyEvaluated the gasoline blending economics for isobutanol versus ethanol for a U.S. Gulf Coast refinery. Calculated the valuedifference between isobutanol and ethanol in a low vapor pressure conventional gasoline. Tennessee Gasoline and Ethanol BlendingProvided an expert report and expert testimony on the production and distribution of ethanol and gasoline, particularly brandedgasoline, in the state of Tennessee. Provided a refiner perspective of the impact of the Renewable Fuel Standard on gasolineblending, distribution, and marketing operations. Isobutanol White PaperEvaluated the economic impact of blending isobutanol in place of ethanol for finished gasoline in various U.S. markets. Alsoevaluated isobutanol as a substitute for purchased alkylate in gasoline blending. Determined the highest value options for blendingisobutanol into gasoline. Summarized the results in a White Paper style report. Biodiesel Plant Construction DisputeEvaluated engineering and construction practices in a dispute between an owner and EPC contractor due to cost overruns. Issuesincluded engineering and project management practices which required rework, and construction practices which created safetyand operability issues. Cost estimates were prepared for correcting the deficiencies. 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. MTBE Contamination Litigation



Supported several oil company clients in defense of claims that the inclusion of MTBE in gasolines supplied to the State of NewHampshire caused contamination of water wells in the state. Provided information on the supply of MTBE-blended gasolines to theState and assessed availability of other oxygenates (primarily ethanol) to meet EPA requirements for oxygenated fuels. Testified attrial. Ethanol Class Action LitigationAssisted a major Florida fuel marketer in Florida in defense against class action claims that ethanol-blended fuels had resulted indamaged boat engines, fuel tanks, and other marine/recreational equipment. Reviewed terminal blending and quality controlpractices, the actual quality and formulation of gasolines delivered to Florida consumers, and state specifications controlling thequality of such gasolines. North Carolina Gasoline and Ethanol Blending AnalysisProvided an expert report on the production and distribution of ethanol and gasoline, particularly branded gasoline, in the state ofNorth Carolina. Provided a refiner's perspective of the impact of the Renewable Fuel Standard on gasoline blending, distributionand marketing operations, considering the options, alternatives and risks of selling gasoline without ethanol. Ethanol Contract DisputeAssisted in a dispute between gasoline marketing firm and an ethanol producer in arbitration over a long -term ethanol supplycontract from a new production facility. Testified in arbitration regarding the development of the contract pricing formula, how itwas to be applied, and the shortcomings associated with it. Isobutanol Valuation Versus EthanolPrepared isobutanol vs. ethanol valuations for gasoline blending at several U.S. refineries. Assessed blend values for refineriesproducing reformulated gasoline, low vapor pressure gasoline, and California Air Resources Board (CARB) gasoline. Bitumen Blend Valuation StudyBegan work on valuing several different bitumen and diluent blends but the study was stopped due to the crude oil assays beingused. Work on this study was never restarted. Strategic Review of Ethanol PlantsProvided a strategic review of an ethanol production business, including the analysis of ethanol plant operating costs compared toregional and ethanol industry competitors. Provided ethanol production margin forecast and made recommendations on whether tocontinue operations, invest in plant improvements, or exit the business. Wind Turbine Generator Failure AnalysisAnalyzed and provided expert testimony on the frequent failure of doubly-fed electrical generators located at a wind powergeneration facility. Examined and critiqued: the previous investigations concerning the possible causes, whether possible causeswere linked to design, manufacturing or operation; and whether adequate steps had been taken to obviate further failures. Opinedon whether the equipment was fit for purpose. Ethanol Plant Operating Cost StudyCompared the estimated cash operating costs for approximately 50 U.S. ethanol plants to the costs for a client's potential ethanolplant acquisition target. Ranked the acquisition target on six separate cash cost metrics and presented the results. Isobutanol Blending StudyEvaluated the gasoline blend value of isobutanol versus ethanol for a Midwest refinery. Calculated isobutanol blend values forsummer and winter and for constrained and unconstrained gasoline production. Gasoline Blending DataProvided gasoline and diesel blend pool quantity and quality data for 15 U.S. refineries for use in biofuel blending studies.



Ethanol Blending LawsuitWorking on behalf of a petroleum industry trade organization, in defense of major gasoline branded companies, provided analysisand opinions related to the potential impact on brand quality from allowing ethanol splash-blending by third parties. Provided experttestimony at trial. Ethanol Plant Freeze ClaimReviewed an insurance claim associated with an idled ethanol manufacturing facility being re-started. Purpose was to assessitems listed in the claim to determine if damages were caused directly by a winter freeze or due to some other failure mechanismsuch as improper mothballing techniques or normal degradation of a once-operating facility. Ethanol Plant Business Interruption DisputeReviewed an insurance claim for an ethanol plant "opportunity loss" due to a power outage resulting from repair work on mainelectrical feed cables after being damaged by a construction contractor. Reviewed operating expenses and ethanol pricing duringthe subject period and provided an opinion on the reasonableness of the size of the claim. 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. 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. Ammonia Plant Project FinanceServed as independent engineer on behalf of the financial advisor for the construction of a new small-scale biomass to nitrogenfertilizers complex. Prepared a technology assessment, analyzed feedstock supply, reviewed contracts, reviewed site andinfrastructure considerations, and advised with negotiation of contracts. Insurance - Sugar Mill: Lost Production ClaimA steam-drive



renewable / alternative energy related …...reviewed and critiqued plant design for prospective...

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