DONALD SHACKELFORD
`8/8/2014
`
`1
`
`Case IPR2014-00216 (Patent 6,179,053)
`Case IPR2014-00364 (Patent 6,289,993)
`
`UNITED STATES PATENT AND TRADEMARK OFFICE
`-----------
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`-----------
`GREENE'S ENERGY GROUP, LLC
`Petitioner
`V.
`OIL STATES ENERGY SERVICES, LLC
`Patent Owner
`------------
`Case IPR2014-00216
`Patent 5,179,053
`Case IPR2014-00364
`Patent 6,289,993
`
`VIDEOTAPED AND ORAL DEPOSITION OF
`DONALD SHACKELFORD
`AUGUST 8, 2014
`
`ANSWERS AND ORAL DEPOSITION OF DONALD SHACKELFORD,
`a witness produced at the instance of the Patent
`Owner, and duly sworn, was taken in the above-styled
`and numbered cause on the 8th day of August, 2014, at
`8:58 a.m. to 1:30 p.m., before KATHY KLEPPEL, a
`Certified Shorthand Reporter in and for the State of
`Texas, reported by machine shorthand, at the offices
`of Greene's Energy Group, LLC, 11757 Katy Freeway,
`Suite 700, in the City of Houston, County of Harris,
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`Greene’s Energy Group, LLC v. Oil States Energy Services, LLC, IPR2014-00216, Ex. 2015
`
`
`8/8/2014
`
`1
`
`Case IPR2014-00216 (Patent 6,179,053)
`Case IPR2014-00364 (Patent 6,289,993)
`
`UNITED STATES PATENT AND TRADEMARK OFFICE
`-----------
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`-----------
`GREENE'S ENERGY GROUP, LLC
`Petitioner
`V.
`OIL STATES ENERGY SERVICES, LLC
`Patent Owner
`------------
`Case IPR2014-00216
`Patent 5,179,053
`Case IPR2014-00364
`Patent 6,289,993
`
`VIDEOTAPED AND ORAL DEPOSITION OF
`DONALD SHACKELFORD
`AUGUST 8, 2014
`
`ANSWERS AND ORAL DEPOSITION OF DONALD SHACKELFORD,
`a witness produced at the instance of the Patent
`Owner, and duly sworn, was taken in the above-styled
`and numbered cause on the 8th day of August, 2014, at
`8:58 a.m. to 1:30 p.m., before KATHY KLEPPEL, a
`Certified Shorthand Reporter in and for the State of
`Texas, reported by machine shorthand, at the offices
`of Greene's Energy Group, LLC, 11757 Katy Freeway,
`Suite 700, in the City of Houston, County of Harris,
`
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`(713) 225-5800
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`Greene’s Energy Group, LLC v. Oil States Energy Services, LLC, IPR2014-00216, Ex. 2015
`
`
`
`DONALD SHACKELFORD
`8/8/2014
`
`2
`
`State of Texas, pursuant to the Federal Rules of Civil
`Procedure and the stipulations hereinafter set forth
`and pursuant to Notice.
`
`A P P E A R A N C E S
`MR. ANDREW CHESLOCK
`FOLEY & Lardner
`3000 K Steet NW
`20007
`Washington, DC
`acheslock@foley.com
`(202) 672-5300
`
`APPEARING FOR THE PETITIONER
`
`MR. ERIK HAWES
`AND
`MR. archis vasant ozarkar
`MORGAN, LEWIS & BOCKIUS, LLP
`1000 Louisiana Street, Suite 4000
`Houston, Texas
`77002
`APPEARING FOR THE PATENT OWNER
`
`ALSO PRESENT:
`
`Mr. Kelly Hughes, videographer
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`DONALD SHACKELFORD
`8/8/2014
`
`I N D E X
`
`3
`
`WITNESS:
`
`DONALD SHACKELFORD
`
`. . . . . . . . .
`Examination by Mr. Hawes
`Corrigendum
`. . . . . . . . . . . . . . . .
`Witness' Signature
`. . . . . . . . . . . . .
`Reporter's Certificate
`. . . . . . . . . . .
`
`E X H I B I T S
`DESCRIPTION
`Declaration of Don W. Shackelford . .
`Declaration of Don W. Shackelford . .
`United States Patent, Herricks, et al
`United States Patent, McLeod
`. . . .
`United States Patent, Dallas
`. . . .
`Memorandum Opinion and Order
`. . . .
`Demande-Application . . . . . . . . .
`United States Patent, Cogbill, et al
`Patent Application
`. . . . . . . . .
`
`NO.
`2003
`2004
`2005
`2006
`2007
`2008
`2009
`2010
`2011
`
`PAGE
`5
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`DONALD SHACKELFORD
`8/8/2014
`
`P R O C E E D I N G S
`
`4
`
`(WHEREUPON, Exhibit No. 2003 was marked for
`identification purposes.)
`It's
`Good morning.
`THE VIDEOGRAPHER:
`August 8th, 2014.
`We're on the record at 8:58 a.m.
`This is the deposition of Donald Shackelford taken in
`the matter of Greene's Energy Group, LLC versus Oil
`States Energy Services, LLC, in the United States
`Patent and Trademark Office, Patent Trial and Appeal
`Board.
`Cause Numbers are IPR2014-00216 and
`IPR2014-00364.
`This deposition is being taken at 11757 Katy
`Freeway, Suite 700, Houston, Texas 77079.
`My name is
`Kelly Hughes, and I'm a videographer with Cornerstone.
`My business address is 7155 Old Katy Road, Suite S100,
`Houston, Texas
`77024.
`Today's court reporter is
`Kathy Kleppel.
`Would counsel please introduce themselves
`for the record, after which the court reporter swear
`the witness when she's ready.
`MR. HAWES:
`Erik Hawes and Neil Ozarkar
`of Morgan Lewis & Bockius for the Respondent, Oil
`States Energy Services.
`MR. CHESLOCK:
`
`I'm Andrew Cheslock of
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`DONALD SHACKELFORD
`8/8/2014
`
`5
`
`the Law Firm Foley & Lardner on behalf of the
`Petitioner, Greene's Energy Group.
`
`DONALD SHACKELFORD,
`having been first duly sworn, testified as follows:
`EXAMINATION
`
`BY MR. HAWES:
`Q.
`Morning, Mr. Shackelford.
`A.
`Good morning.
`Q.
`Can you please state your full name for the
`record.
`Donald, D-o-n-a-l-d, Wayne, W-a-y-n-e,
`A.
`Shackelford, S-h-a-c-k-e-l-f-o-r-d.
`Q.
`Thank you.
`And just sort of a housekeeping
`question for the record, you're not taking any
`medication that would affect your ability to give full
`and accurate answers here today, are you?
`A.
`That's correct.
`Q.
`Mr. Shackelford, you've had your deposition
`taken a number of times in the past, correct?
`A.
`Correct.
`Q.
`Any idea how many?
`A.
`I'll say a dozen perhaps, if you include
`maybe the testimony before various qual and state
`regulatory bodies, state level.
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`DONALD SHACKELFORD
`8/8/2014
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`6
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`And some of those depositions have been in
`Q.
`the capacity of an expert witness?
`A.
`Yes, sir.
`Q.
`Okay.
`So I assume you sort of understand
`how the process works.
`If you don't understand any of
`the questions I ask today, let me know and I'll do my
`best to rephrase them in a way that they make more
`sense to you.
`If you need a break at any point, let
`me know and as long as there's not a question pending
`at that time, we're happy to accommodate that.
`And, otherwise, do you have any questions
`about the deposition process before we get started?
`A.
`No, sir.
`Q.
`Okay.
`Did you meet with anyone or I --
`scratch that.
`Did you do anything to prepare for your
`deposition today?
`A.
`I did.
`Q.
`What did you do?
`A.
`I read the 053 patent, I read the 993
`patent, I read a patent by Herricks, a patent -- or
`two patents by McLeod.
`I also read the declarations
`that I signature -- provided the signature for, and
`there were some telephone conversations with the
`attorneys Cheslock and Feldhaus.
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`CORNERSTONE REPORTING
`(713) 225-5800
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`DONALD SHACKELFORD
`8/8/2014
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`Your review of those documents was that
`Q.
`recent, within the last couple of days?
`A.
`No, it would have been longer ago than that.
`Q.
`Any idea when?
`A.
`Probably within the last week or 10 days.
`Q.
`Okay.
`Are any other documents you can think
`of that you reviewed to get ready?
`A.
`I read the summary of the PTAB construction
`information provided by Attorney Cheslock.
`And if I
`could go back and amend an earlier answer, I also read
`a Canadian application patent by Dallas.
`Q.
`Okay.
`A.
`There was also produced in the past a
`section of a composite catalog, and I looked at that.
`There's a printout from a website which references
`certain durometer ratings of various materials.
`I
`read PTAB construction information, and then there's
`also an additional document that I looked at of a
`company called Wellhead, Inc.
`Q.
`What was the last thing?
`A.
`Wellhead, Inc.
`Q.
`Okay.
`Anything else?
`A.
`Not that I can recall at this time.
`Q.
`Okay.
`Can you briefly summarize your
`educational background.
`
`CORNERSTONE REPORTING
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`DONALD SHACKELFORD
`8/8/2014
`
`8
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`I have a bachelor's, BS, in mechanical
`A.
`engineering from Texas Tech.
`And I have a master of
`science in mechanical engineering from Texas Tech.
`The first was granted in '69, and the second in '72.
`Q.
`Okay.
`Did you have any particular area of
`study in either undergraduate or graduate school?
`A.
`No, I intentionally kept it as general as
`possible.
`And Tech had instituted a master's report
`in lieu of a thesis for the master's degree such that
`instead of doing research I could take an additional
`six hours, two three-hour courses, and basically just
`prepare myself since I wasn't certain where I would
`wind up as professional career to be as prepared
`generally as possible.
`Excuse me, I'm sorry
`THE VIDEOGRAPHER:
`Could you slide your mike a little bit
`to interrupt.
`closer.
`You're hitting it when you lean over.
`THE WITNESS:
`(Complies.)
`THE VIDEOGRAPHER:
`That's good.
`
`(By Mr. Hawes)
`
`What did you master's report
`
`Thanks.
`Q.
`involve?
`It
`I wrote that on the Valco rotary engine.
`A.
`was used in the Mazda RX7 and RX8 series cars.
`It was
`fairly new and innovative at the time.
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`DONALD SHACKELFORD
`8/8/2014
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`It wasn't anything that had to do with oil
`Q.
`and gas drilling?
`A.
`Other than it was an internal combustion
`engine which burned gasoline and had oil as a
`lubricant.
`So following -- well, maybe not
`Okay.
`Q.
`following, maybe I -- I should back up.
`Did you start work as an engineer while you
`were still in college?
`A.
`Yes.
`Q.
`Doing what?
`And there
`A.
`I would work through the summers.
`were companies, one of them being initially Shamrock
`Oil and Gas, which then became Diamond Shamrock, and I
`would spend the summers working with that -- those --
`those two companies, which are really the same
`company, just under different corporate ownership in
`oil and gas operations.
`Q.
`What kind of work did you do at Diamond
`Shamrock?
`Primarily I was with the group that did well
`A.
`testing, and this involved wireline slickline
`normally, operations where we would measure fluid
`levels and bottom hole pressures on various wells.
`And then we did open hole or flow testing using a
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`CORNERSTONE REPORTING
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`DONALD SHACKELFORD
`8/8/2014
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`critical flow cruder for new wells that were coming on
`line for the Texas Railroad Commission to give --
`establish an allowable production.
`Q.
`Anything that had to do with well
`completions or fracturing?
`A.
`Not at that time.
`Q.
`Okay.
`So then after working at Diamond
`Shamrock what was your next professional experience in
`the oil and gas industry?
`A.
`It would have been with Halliburton
`Services.
`When was that?
`Q.
`That would have been '69, January of '69
`A.
`through August or September of '69.
`Q.
`Okay.
`While you were in graduate school?
`A.
`No, this was following the conferral of the
`master's degree -- excuse me.
`Excuse me.
`That was
`following the bachelor's degree, and so I went
`straight to Halliburton after graduation.
`Q.
`How long were you at Halliburton?
`A.
`I was with Halliburton about eight or nine
`months that time, and then following my career in the
`military or my time in the military, which started in
`September of '69, I went back to graduate school at
`Tech, was granted the master's degree and then came
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`CORNERSTONE REPORTING
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`DONALD SHACKELFORD
`8/8/2014
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`back with Halliburton in essentially the same
`department that I was in prior to that with the
`bachelor's degree in '69.
`Q.
`So you went back there in '72?
`A.
`Correct.
`Q.
`And then worked there for how long?
`A.
`About 30 years.
`Q.
`Okay.
`And in that 30-year period I assume
`you worked in a number of different departments and
`different capacities within Halliburton; is that true?
`A.
`There were four, if I remember correctly.
`Q.
`Okay.
`When was the first time you had any
`job responsibilities at Halliburton that related to
`well completions or hydraulic fracturing?
`A.
`That would have been in the first position,
`which was with a department called Mechanical Research
`and Development.
`Q.
`When was that?
`A.
`From -- well, January of '69 through
`September of '69, but I don't remember specifically
`whether there were any fracturing exposure jobs that I
`was involved with at that time.
`And then following
`the master's degree I worked in that department for
`about seven years, from late '72 through about '79 or
`'80.
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`CORNERSTONE REPORTING
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`DONALD SHACKELFORD
`8/8/2014
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`And what did you do in relation to
`Okay.
`Q.
`hydraulic fracturing during that seven-year period?
`A.
`There were no specific assignments.
`However, we had a number of components and I
`volunteered on a couple of occasions to go to the
`field in the job and -- and operate or ensure that
`those components were attached to the well correctly
`and were functioning.
`Q.
`Which components?
`A.
`The one that I recall was a -- a relief
`valve.
`And at the time a common fracturing system was
`to fracture down a tubing string or casing string with
`the imposition of backside pressure, which increased
`the allowable internal pressure.
`And to protect the
`casing, the outer string of casing, this relief valve,
`if there was a -- a parting of the tubing or some
`other catastrophic event, it would relieve the
`pressure on the casing and protect the outer string.
`Q.
`Okay.
`I should have -- I should have shown
`you this before.
`Sorry.
`This is -- been marked as
`Exhibit 2003 three.
`Can you flip through that and
`confirm that that's a copy of the declaration that you
`signed and one of the pending IPR proceedings.
`And
`specifically right now I was going to ask you some
`questions about your resume, which is at the back of
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`DONALD SHACKELFORD
`8/8/2014
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`13
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`that document.
`
`Hey, Erik, one thing I
`MR. CHESLOCK:
`noticed this is the blurry one, we had like resent --
`resubmitted a reformat of one, that's what I notice
`about this.
`
`Okay.
`
`Okay.
`MR. HAWES:
`This appears to the document that -- that I
`
`A.
`signed --
`(By Mr. Hawes)
`Q.
`-- yes.
`A.
`I believe in your
`(By Mr. Hawes)
`Q.
`declaration, and you can look at Paragraph 4 if you
`like, it -- it says that you have held jobs that
`involve the use of wellhead isolation tools; is that
`right?
`That's correct.
`A.
`Okay.
`So of the -- the various departments
`Q.
`you worked in at Halliburton, which was the one that
`involved the use of wellhead isolation tools?
`A.
`There were actually a couple.
`This one
`that's referenced in Paragraph 4 as Domestic General
`Services, actually operated several wellhead isolation
`tools.
`And then there was a -- a department called
`Engineering; and I had responsibilities for a
`fracturing unit called the HG 2000, and those units
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`DONALD SHACKELFORD
`8/8/2014
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`were used on jobs which not always, but occasionally,
`would use wellhead isolation tools.
`Q.
`Okay.
`So the first one you mentioned
`Domestic General Services, what types of wellhead
`isolation tools did you personally use?
`A.
`I was not personally responsible for
`operation of the tools.
`But as one of the engineers
`in that group, if there was a problem I would
`frequently be consulted and would work, then, with the
`engineers who did do the design work in an effort to
`mitigate or minimize the problem.
`Q.
`So what types of wellhead isolation tools
`did Halliburton have at that time that you would have
`been exposed to in that position?
`A.
`And could you define what you mean by
`"type."
`How many different wellhead isolation tools
`Q.
`did you work on?
`A.
`The wellhead isolation tools that Domestic
`General Services had were of a consistent design but
`for different sizes.
`Where did they
`Q.
`How -- how did they work?
`How did they protect the wellhead?
`MR. CHESLOCK:
`Objection, form.
`These tools had a seal that operated inside
`
`seal?
`
`A.
`
`CORNERSTONE REPORTING
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`DONALD SHACKELFORD
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`the tubing or inside the casing, whatever the inside
`diameter of the well completion was.
`Q.
`(By Mr. Hawes)
`Was there a particular name
`that Halliburton used to refer to those tools?
`A.
`If I recall correctly in the catalog or the
`company -- Halliburton catalog, it was just a wellhead
`isolation tool.
`But I'm not aware that those units
`were sold.
`Those were a complementary component that
`went with the regular fracturing job, which
`Halliburton would provide.
`Q.
`Do you know if that's the kind of tool that
`some people might refer to as casing savers?
`A.
`I have heard that term, and I think they are
`roughly synonymous, yes.
`Q.
`Okay.
`Now, did you say you supported the
`engineers that worked on the design of those tools?
`A.
`I wouldn't classify my involvement with
`support or as support.
`I think it was more a matter
`of communication from the field personnel, the
`operators of the tools as to the nature of the problem
`they were reporting and work with them on a -- a
`modification or a change that might make the tool last
`longer.
`Did you personally work on the design of
`Q.
`those tools?
`
`CORNERSTONE REPORTING
`(713) 225-5800
`
`
`
`DONALD SHACKELFORD
`8/8/2014
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`No.
`A.
`Do you remember any of the modifications
`Q.
`that were made to those tools during the time you were
`in that department?
`A.
`Not specifically, but in general I think
`there were some changes to the metallurgy of the
`mandrel to provide more erosional resistance to wear.
`And there was also, I think, some changes in maybe
`the -- the elastomers that we used in the sealing
`elements themselves.
`Q.
`Do you remember whether there were any
`discussions of trying to design a new type of wellhead
`isolation tool altogether?
`Objection, form.
`MR. CHESLOCK:
`I don't recall personally being involved in
`A.
`any such discussions, but they may have occurred
`within the company, with the Halliburton Company.
`Q.
`(By Mr. Hawes)
`You just don't know either
`
`way?
`
`I just don't know, yes, sir.
`A.
`How many engineers worked in that group on
`Q.
`the design of wellhead isolation tools for
`Halliburton?
`A.
`The total engineers in the group would, I
`think, be somewhere around 50, but the primary
`
`CORNERSTONE REPORTING
`(713) 225-5800
`
`
`
`DONALD SHACKELFORD
`8/8/2014
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`responsibility for a wellhead iso tool was assigned to
`one of those engineers.
`Q.
`Was he the only one who worked on those
`tools, on the design of those tools?
`A.
`He would not have been the only one who
`worked on the design, but he would have been the one
`that had primary responsibility for signature on the
`drawings and the specifying of components that made up
`the tool.
`Do you have any ballpark idea how many
`Q.
`different engineers in that group you personally
`worked with on projects that related to the design of
`the wellhead isolation tool?
`A.
`The primary contact would have been with the
`responsible engineer for the tools, but there may have
`been some peripheral conversations where there was
`more than one engineer involved.
`Q.
`The -- what was the term you used, the
`responsible engineer?
`A.
`I'm not sure that that's how the company --
`Q.
`Okay.
`A.
`-- would define it, but that's -- that was
`to illustrate the --
`Q.
`Okay.
`A.
`-- the -- his role as far as the involvement
`
`CORNERSTONE REPORTING
`(713) 225-5800
`
`
`
`DONALD SHACKELFORD
`8/8/2014
`
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`with the wellhead isolation tools.
`Q.
`Was that all he worked on?
`A.
`No, he would have had additional
`responsibilities.
`Did you ever have any involvement in
`Q.
`Okay.
`sales or marketing of wellhead isolation tools?
`A.
`I would have, yes.
`Q.
`Okay.
`In what way?
`A.
`At the time I was employed in Duncan,
`particularly in the first department, the Mechanical
`Research and Development.
`Halliburton would
`frequently fly in a customer group from one of their
`districts or one of the areas where Halliburton had
`operations.
`And as a employee or member, engineer of
`Mechanical Research and Development department, I
`would frequently give a presentation.
`And while it
`wasn't directly selling something, nonetheless it was
`to educate the customers on the advantages of the
`Halliburton system and the products that the company
`offered.
`Did you have any knowledge at the time of
`Q.
`the market conditions for these isolation tools that
`Halliburton had?
`A.
`That was not something that I followed
`regularly, but I may have heard various statistics
`
`CORNERSTONE REPORTING
`(713) 225-5800
`
`
`
`DONALD SHACKELFORD
`8/8/2014
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`from time to time.
`Q.
`Statistics relating to?
`A.
`How many jobs used wellhead isolation tools
`or what the horsepower requirement was on -- on
`various jobs.
`Q.
`Did you ever hear anything about customers
`having concerns or complaints about the isolation
`tools that Halliburton had at the time?
`MR. CHESLOCK:
`Objection, form.
`I don't recall one specifically, but that
`A.
`may have occurred.
`Do -- do you -- are
`Okay.
`Q.
`(By Mr. Hawes)
`you saying you remember concerns that were expressed,
`you just don't know when they were expressed or you
`just don't remember at all either way?
`A.
`I don't remember whether I was involved in a
`conversation about those, but I may have -- have
`either read in a company bulletin or -- or heard
`something maybe in the hallway that there was a
`problem on a job.
`Q.
`But you don't know what those problems would
`have --
`A.
`
`I don't recall anything specifically, no,
`
`sir.
`
`Q.
`
`Were you aware of any other competing
`
`CORNERSTONE REPORTING
`(713) 225-5800
`
`
`
`DONALD SHACKELFORD
`8/8/2014
`
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`wellhead isolation tools in the market that were being
`offered by third parties?
`A.
`My recollection is that the only ones that I
`heard about were those that were associated with the
`competitive service companies, not a third party.
`Q.
`What do you mean by "competitive service
`companies"?
`A.
`Halliburton was a -- a fracturing company,
`but BJ Hughes also did fracturing work.
`And at the
`time there was a company called Western Fracturing
`Company, and there was a company Dowell that did
`fracturing, which was later purchased by Schlumberger.
`So, again, my memory says that -- or tells
`me that each one of those companies had developed
`their own wellhead isolation tool.
`But like
`Halliburton, they were offered as a -- a complement to
`the fracturing service, but there may have been third
`parties that provided wellhead isolation tools at that
`time, I'm just not aware of any.
`Q.
`Do you know anything about how the isolation
`tools of the competitive service companies worked?
`A.
`I have done no studies on that regard.
`Q.
`Did you know at the time, were they casing
`savers in the sense that they were similar on that
`level to the Halliburton tool?
`
`CORNERSTONE REPORTING
`(713) 225-5800
`
`
`
`DONALD SHACKELFORD
`8/8/2014
`
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`Objection, form.
`MR. CHESLOCK:
`I think casing saver was -- was the name of
`A.
`the tool, but I don't have any knowledge of how it
`actually functioned or what -- what the specifications
`were.
`I think another company called their tool a
`tree saver.
`And did you say earlier that
`Q.
`(By Mr. Hawes)
`you also had some experience with isolation tools in
`the engineering department at Halliburton?
`A.
`Based on my memory and because I had
`responsibility for these HG 2000 fracturing trailers
`that I would frequently be involved on the job, but my
`primary responsibility and interest was in the
`performance of those fracturing pumps, not necessarily
`any involvement or monitoring of the wellhead
`isolation tool.
`But I feel certain and I recall that
`there were jobs where the wellhead isolation tool was
`involved.
`But, again, my -- my concentration was on
`the pumping trucks.
`Q.
`Is this, then, the 1986 to 1993 time frame?
`A.
`That would be correct.
`Q.
`Okay.
`Did Halliburton still have the same
`basic casing saver tool design at that time?
`A.
`I believe the basic design was essentially
`the same, yes.
`
`CORNERSTONE REPORTING
`(713) 225-5800
`
`
`
`DONALD SHACKELFORD
`8/8/2014
`
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`Do you know anything about what isolation
`Q.
`tools Halliburton may have developed after 1993?
`A.
`I have no knowledge of -- of that
`development work.
`Q.
`Do you know anything at all about the market
`for wellhead isolation tools in the time since 1993?
`A.
`No, sir.
`Q.
`During the -- the 1979 to 1986 period we
`were talking about earlier when you were in Domestic
`General Services, did you have any knowledge about how
`competitive the market was for fracturing services and
`isolation tools?
`Objection, form.
`MR. CHESLOCK:
`Yes, I did have knowledge of the market
`A.
`condition, some market conditions.
`Q.
`(By Mr. Hawes)
`Can you try to characterize
`how competitive that you think that market was at the
`time?
`
`In 1972 OPEC imposed an embargo on the
`A.
`United States.
`And oil and gas was very, very active
`up until the years 1982.
`So I think all service
`companies were quite busy.
`In 1982, however, there was a significant
`reduction in the -- in the price of oil and a
`significant drop in the activity level for all of the
`
`CORNERSTONE REPORTING
`(713) 225-5800
`
`
`
`DONALD SHACKELFORD
`8/8/2014
`
`23
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`So that became quite competitive at
`service work.
`that time and jobs were frequently let on bids;
`and -- and in many cases those bids were quite low,
`just barely able to -- to cover the cost of the
`operation.
`So the question covers a time period which
`was extremely active and then tailed off where it
`was -- people were being laid off and companies were
`scrambling for opportunities to provide service.
`Q.
`Do you know how long those market conditions
`from 1982 time frame persisted?
`A.
`My best estimate would be through '94 or so.
`Q.
`What happened in '94?
`A.
`I think that was just a general recovery of
`the US economy, and -- which was accompanied by an
`increase demand for oil and gas products.
`Q.
`When were you first contacted by Greene's
`about working on these IPR proceedings?
`A.
`I think it was probably in August or
`September of 2013.
`Q.
`Okay.
`What was the task for which you were
`initially retained?
`And I just caution you,
`MR. CHESLOCK:
`Don, to just answer his question factually as to the
`task, but don't disclose any discussions that we've
`had.
`
`CORNERSTONE REPORTING
`(713) 225-5800
`
`
`
`DONALD SHACKELFORD
`8/8/2014
`
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`I was asked to assist with a case that
`A.
`involved wellhead isolation tool.
`Q.
`(By Mr. Hawes)
`Assist in what capacity?
`A.
`As an expert witness.
`Q.
`Do you understand what particular issues you
`were going to be asked to address?
`At that first
`A.
`That was an evolving process.
`contact I had no idea what would be later coming in as
`far as information or request for assistance.
`Q.
`Ultimately did you understand that you were
`being retained to assist Greene's Energy Group in its
`efforts to invalidate these two patents that we're
`discussing here today?
`A.
`I would agree with that statement, yes.
`Q.
`How many hours to date have you spent
`working on these two IPR proceedings?
`A.
`As an estimate, I would say it's in the
`neighborhood of 70 to 80.
`Q.
`And what is your current hourly billing
`
`rate?
`
`$400.
`A.
`During the course of preparing your two
`Q.
`declarations in these cases, can you tell me as best
`you can recall what materials you consulted?
`A.
`I was sent several patents for examination,
`
`CORNERSTONE REPORTING
`(713) 225-5800
`
`
`
`DONALD SHACKELFORD
`8/8/2014
`
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`there was also some industry information that was sent
`by Foley & Lardner.
`I don't recall any of those
`documents right now by name.
`Q.
`Okay.
`Did you personally do any research in
`the course of preparing your declarations?
`A.
`I did.
`What -- what kind of research?
`Q.
`Okay.
`A.
`There were questions which I looked at as
`far as an internet search to see if I could find
`answers or information for.
`Q.
`Information about what?
`A.
`The one that comes to mind is elastomer
`materials.
`Anything else?
`Q.
`I recall looking at a website that -- or
`A.
`looking on the internet for various wellhead
`components that were referenced in some of the
`documents that I received from Foley & Lardner.
`Q.
`What type of wellhead components?
`A.
`One example would be a tubing head or a
`tubing spool.
`Q.
`What information were you looking for online
`about tubing heads or tubing spools?
`A.
`Primarily the internal construction of those
`components and how they function in the real world as
`
`CORNERSTONE REPORTING
`(713) 225-5800
`
`
`
`DONALD SHACKELFORD
`8/8/2014
`
`26
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`Q.
`
`far as an assembly for completing the well.
`Q.
`And what did you find in the course of that
`research?
`That there were variations from company to
`A.
`company in the design, and -- but nothing other than
`that that I recall.
`Q.
`Did you rely on any of the information that
`you found online in forming your opinions --
`MR. CHESLOCK:
`Objection --
`-- of these cases?
`Objection, form.
`MR. CHESLOCK:
`I feel that it influenced some of the
`A.
`language in the declarations, but I referred to the --
`the text more than -- than my memory.
`Q.
`(By Mr. Hawes)
`Which language in the
`declarations do you think was influenced by that?
`A.
`I don't know of any specific entry or line
`item or paragraph that would have had that influence,
`it was a general influence I think document wide.
`Q.
`What websites did you look at in doing that
`research?
`One was Stream Flo and then one was
`A.
`Wellhead, Inc.
`Q.
`Did you say String, S-t-r-i-n-g?
`A.
`Stream, S-t-r-e-a-m Flo.
`
`CORNERSTONE REPORTING
`(713) 225-5800
`
`
`
`DONALD SHACKELFORD
`8/8/2014
`
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`Okay.
`Q.
`And Flo is F-l-o.
`A.
`What is Stream Flo?
`Q.
`It's the name of a company, to the best of
`A.
`my knowledge.
`Q.
`Did you print out any documents from the
`Stream Flo website?
`A.
`I didn't personally print them out, but they
`had been produced by Foley & Lardner.
`Q.
`Okay.
`Which documents in particular are you
`talking about?
`A.
`It's called the Composite Catalog Reference,
`and that's Exhibit 1006.
`And at the -- at the back of
`that -- that production is a printout called -- of a
`company called Stream Flo.
`Q.
`Okay.
`What information did you rely on from
`the Stream Flo wellhead catalog?
`A.
`Primarily we were looking at a TL, as in
`tango, lemur, tubing head, which is Page 8 of the
`Stream Flo catalog or the Stream Flo section of that
`production, Exhibit 1006.
`Q.
`Okay.
`What -- what aspect of that wellhead
`did you rely on in forming your opinions?
`A.
`Primarily this internal construction and
`where the casing attaches.
`
`CORNERSTONE REPORTING
`(713) 225-5800
`
`
`
`DONALD SHACKELFORD
`8/8/2014
`
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`And
`
`What about that?
`Q.
`In the declaration for the 993 patent, in
`A.
`Paragraph 76 we talk about Herricks tubing spool.
`this TL tubing head was an example of products
`generally available through the industry or in -- from
`the industry.
`Well, let's -- let's hold that
`Q.
`All right.
`Were there any other aspect of
`thought until later.
`the information on those web sites that you relied on
`in forming your opinions?
`A.
`Not that hasn't been already generally
`discussed that I recall.
`Q.
`Who physically prepared the two declarations
`that you signed in these two IPR proceedings?
`A.
`I don't know who individually.
`I
`participated in the preparation --
`Q.
`Okay.
`A.
`-- of the language.
`Q.
`How did you participate?
`MR. CHESLOCK:
`Here, Don, again, I'd
`caution you to not disclose any substantive
`conversations that you had with either myself or any
`other members of Foley & Lardner, but you can explain
`generally the factual manner in which you participated
`in creating the declaration.
`
`CORNERSTONE REPORTING
`(713) 225-5800
`
`
`
`DONALD SHACKELFORD
`8/8/2014
`
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`There were conversations with Attorney
`A.
`Cheslock, Attorney Feldhaus, and Attorney Roush with
`Foley & Lardner, where we discussed portions of the
`language that would be used in the declaration.
`And
`subsequent to that then I would receive occasionally a
`computer file that I could proofread.
`Q.
`(By Mr. Hawes)
`So you personally read
`through both documents and can vouch for the accuracy
`of everything that's in both the declarations?
`A.
`That's correct.
`Q.
`Okay.
`I forgot to ask one question earlier
`about your resume.
`Is the -- the copy of your resume
`that's attached at the back of Exhibit 2003, is that
`current?
`No.
`A.
`In what -- in what way is it not current?
`Q.
`This resume, as far as the -- the job
`A.
`listing of project listing terminates while I was an
`employee with Boots & Coots.
`I retired in August of
`last year.
`And since then as a consultant I've had
`other projects, and in my computer I have listed those
`but they're not on this particular version of the
`resume.
`So other than not having been updated
`Okay.
`Q.
`since your retirement, is everything else in that
`
`CORNERSTONE REPORTING
`(713) 225-5800
`
`
`
`DONALD SHACKELFORD
`8/8/2014
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`document accurate?
`A.
`To the best of my knowledge, it is.
`Q.
`Okay.
`And it -- it sounds like you
`personally maintain your resumes, so you're aware of
`everything that's in there and it's a
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