DECLARATION OF ALI DANESHY
`
`1.
`
`My name is Ali Daneshy. I am over the age of twenty-one (21)
`
`years, of sound mind, and capable of making the statements set forth in this
`
`Declaration. I am competent to testify about the matters set forth herein. All the
`
`facts and statements contained herein are within my personal knowledge and they
`
`are, in all things, true and correct.
`
`2.
`
`I have been asked by Baker Hughes Incorporated (“Baker
`
`Hughes”) to submit this declaration in support of its challenge to the validity of
`
`certain claims of U.S. Patent No. 7,134,505 (“the ’505 Patent”).
`
`I.
`
`Education and Experience
`My curriculum vitae is attached as Exhibit 1.
`
`3.
`
`4.
`
`I received a Master of Science Degree in Mining Engineering
`
`from the University of Tehran in 19641, a Master of Science Degree in Mineral
`
`Engineering (Rock Mechanics) from the University of Minnesota in 1968, and a
`
`Ph.D. in Mining Engineering (Rock Mechanics) from the University of Missouri-
`
`Rolla in 1969.
`
`BAKER HUGHES INCORPORATED
`AND BAKER HUGHES OILFIELD
`OPERATIONS, INC.
`
`1 At that time, the University of Tehran did not offer a bachelor’s degree in
`Exhibit 1007
`BAKER HUGHES INCORPORATED
`AND BAKER HUGHES OILFIELD
`OPERATIONS, INC. v. PACKERS
`PLUS ENERGY SERVICES, INC.
`IPR2016-00596
`Page 1 of 63
`
`engineering.
`
`- 1 -
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`
`
`1.
`
`My name is Ali Daneshy. I am over the age of twenty-one (21)
`
`years, of sound mind, and capable of making the statements set forth in this
`
`Declaration. I am competent to testify about the matters set forth herein. All the
`
`facts and statements contained herein are within my personal knowledge and they
`
`are, in all things, true and correct.
`
`2.
`
`I have been asked by Baker Hughes Incorporated (“Baker
`
`Hughes”) to submit this declaration in support of its challenge to the validity of
`
`certain claims of U.S. Patent No. 7,134,505 (“the ’505 Patent”).
`
`I.
`
`Education and Experience
`My curriculum vitae is attached as Exhibit 1.
`
`3.
`
`4.
`
`I received a Master of Science Degree in Mining Engineering
`
`from the University of Tehran in 19641, a Master of Science Degree in Mineral
`
`Engineering (Rock Mechanics) from the University of Minnesota in 1968, and a
`
`Ph.D. in Mining Engineering (Rock Mechanics) from the University of Missouri-
`
`Rolla in 1969.
`
`BAKER HUGHES INCORPORATED
`AND BAKER HUGHES OILFIELD
`OPERATIONS, INC.
`
`1 At that time, the University of Tehran did not offer a bachelor’s degree in
`Exhibit 1007
`BAKER HUGHES INCORPORATED
`AND BAKER HUGHES OILFIELD
`OPERATIONS, INC. v. PACKERS
`PLUS ENERGY SERVICES, INC.
`IPR2016-00596
`Page 1 of 63
`
`engineering.
`
`- 1 -
`
`
`
`DECLARATION OF ALI DANESHY
`
`1.
`
`My name is Ali Daneshy. I am over the age of twenty-one (21)
`
`years, of sound mind, and capable of making the statements set forth in this
`
`Declaration. I am competent to testify about the matters set forth herein. All the
`
`facts and statements contained herein are within my personal knowledge and they
`
`are, in all things, true and correct.
`
`2.
`
`I have been asked by Baker Hughes Incorporated (“Baker
`
`Hughes”) to submit this declaration in support of its challenge to the validity of
`
`certain claims of U.S. Patent No. 7,134,505 (“the ’505 Patent”).
`
`I.
`
`Education and Experience
`My curriculum vitae is attached as Exhibit 1.
`
`3.
`
`4.
`
`I received a Master of Science Degree in Mining Engineering
`
`from the University of Tehran in 19641, a Master of Science Degree in Mineral
`
`Engineering (Rock Mechanics) from the University of Minnesota in 1968, and a
`
`Ph.D. in Mining Engineering (Rock Mechanics) from the University of Missouri-
`
`Rolla in 1969.
`
`
`1 At that time, the University of Tehran did not offer a bachelor’s degree in
`
`engineering.
`
`- 1 -
`
`Page 1 of 63
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`
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`5.
`
`I have more than 45 years of industry experience as a geo-
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`mechanical engineer primarily in technology and operations of hydraulic
`
`fracturing. I began my career with Halliburton Company in 1969 and held
`
`numerous technology and management positions at Halliburton for the next 29
`
`years in areas such as well stimulation, geo-mechanics, produced water
`
`management, software development, fluid mechanics, intelligent completions,
`
`under-balanced drilling, on-site data acquisition systems, etc. Each of the
`
`management positions I held at Halliburton was created as a result of the growth of
`
`my previous projects.
`
`6.
`
`I started at Halliburton’s Duncan, Oklahoma Research Center in
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`1969 as a research engineer performing research related to hydraulic fracturing.
`
`During this time, I developed a fracture design software named PROP that became
`
`a widely used fracture design program. PROP was used thousands of times
`
`annually to assist operators all over the world in planning and executing successful
`
`fracturing treatments.
`
`7.
`
`In 1972, I was promoted to Group Leader of a new research
`
`group. As Group Leader, I led a team of 15-20 engineers in research related to
`
`hydraulic fracturing and other related fields (e.g., reservoir engineering, fluid
`
`mechanics). The success of this research justified greater resources and, in 1975, I
`
`was promoted to Section Supervisor, where I led a team of 30-50 engineers.
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`- 2 -
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`Page 2 of 63
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`During this time, our team focused on several main projects: (1) on-site fracturing
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`data acquisition software development, (2) engineering research, (3) computerized
`
`equipment used in the oil and gas field, (4) reservoir engineering, and (5) hydraulic
`
`fracturing.
`
`8.
`
`The third of these projects was considered by many to be
`
`revolutionary at the time. It involved on-site, computerized data acquisition and
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`analysis during hydraulic fracturing operations, primarily in oil and gas-bearing
`
`wells. The results of this data analysis could be given to the customer at the well
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`site. No other company was performing this service at the time. In addition to
`
`these developments, I helped develop curriculum and materials for training
`
`regarding hydraulic fracturing and stimulation at Halliburton, which were used to
`
`train engineers primarily in the field.
`
`9.
`
`In 1983, I was promoted to Department Manager of Reservoir
`
`Research and Engineering, and was responsible for the performance of 40-50
`
`engineers who were in my department. Much of the research performed by my
`
`department during this time related to improving the technology of hydraulic
`
`fracturing, and the use of computer technology, in order to increase production of
`
`oil and gas wells and the efficiency of fracturing operations. For example, my
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`team developed equipment for automated mixing of fracturing fluids—composed
`
`of additives and other chemicals—via computer control rather than manually.
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`These developments increased the effectiveness and decreased the cost of
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`fracturing treatments.
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`10.
`
`I also worked with Halliburton during this time to advise and
`
`develop technologies used by oil and gas companies in performing the first
`
`commercial hydraulic fracturing operations in horizontal wells, including the very
`
`first—drilled by Maersk Oil in 1987. In this capacity, I became familiar with the
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`pioneering “Perforate, Stimulate, Isolate” (“PSI”) system developed by Baker Oil
`
`Tools, which reduced the time to create multiple fractures in a single wellbore
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`from weeks to days.
`
`11.
`
`In 1989, I formed and led Halliburton’s European Research
`
`Center dedicated to oil and gas operations in the Eastern Hemisphere. While in
`
`this capacity, I continued to develop technologies used by Maersk and others to
`
`improve the production and efficiency of hydraulic fracturing of horizontally
`
`drilled wells, including those used to overcome logistical challenges.
`
`12.
`
`In 1993, I became the Regional Technical Manager for
`
`Halliburton in Europe and Africa, while I also advised customers in the Middle
`
`East and Asia Pacific regions. As Regional Technical Manager, I worked directly
`
`with operations engineers and personnel to help them implement various
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`Halliburton services, including services related to stimulation methods in
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`horizontal wells. Some of my responsibilities included ensuring that new
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`engineers were properly trained and had access to the most up-to-date technology
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`and resources, and promoting development of new technologies and methods to
`
`increase production from oil and gas reservoirs.
`
`13.
`
`In 1996, I was promoted to Vice President of Integrated
`
`Technology Products and moved to Houston, Texas. While in this capacity, I was
`
`responsible for integrating leading-edge technologies into the oil and gas services
`
`business, including underbalanced drilling, multi-lateral wells, advanced data
`
`management techniques, intelligent completions, water control, and more.
`
`14.
`
`I retired from working at Halliburton in 1999, and formed a
`
`private engineering consulting company where I continue to work as a technical
`
`advisor and consultant to oil and gas companies, and oil and gas services
`
`companies, throughout the world. My services include consultations regarding
`
`production stimulation and hydraulic fracturing of vertical and non-vertical wells,
`
`well completions, unconventional and low permeability reservoir planning and
`
`development, and reservoir stimulation.
`
`15.
`
`Shortly after retiring from Halliburton, in 2004 I became
`
`director of the Petroleum Engineering Program at the University of Houston and,
`
`while in this position, initiated the establishment of an undergraduate petroleum
`
`engineering curriculum. I continue to teach as an adjunct professor at the
`
`University of Houston to this day. I have also been a guest lecturer on topics
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`
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`related to well completion and fracturing at many universities in the United States
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`and abroad, and have served on Ph. D. advisory boards and committees.
`
`16. During my career, I have authored more than 45 technical
`
`publications and 15 papers related to technology management and creativity, which
`
`are listed in my attached curriculum vitae, as well as book chapters, on the subject
`
`of hydraulic fracturing. I am also the publisher and co-Editor-in-Chief of a
`
`quarterly journal called “HFJ” (Hydraulic Fracturing Journal) dedicated entirely to
`
`the dissemination of the latest hydraulic fracturing technologies.
`
`17.
`
`I have also received several awards and served in various
`
`positions—including multiple chairman positions—on a
`
`large number of
`
`committees and boards related to petroleum engineering. These positions and
`
`awards are listed in my curriculum vitae. Notable positions include Director At
`
`Large on the Society of Petroleum Engineers’ (“SPE”) Board of Directors,
`
`including two chair positions, and Chairman of the Journal of Petroleum
`
`Technology Roundtable. Notable awards include both the SPE Distinguished
`
`Member Award and the SPE Distinguished Service Award for contributions to
`
`hydraulic fracturing, as well as being named a SPE Distinguished Lecturer in 2004.
`
`18. Having the above knowledge and experience, I am well
`
`qualified to offer the opinions I express in this declaration.
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`
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`II.
`
`Compensation
`
`19.
`
`In consideration for my services, my work on this case is being
`
`billed to Baker Hughes at an hourly rate of $562.50 per hour, independent of the
`
`outcome of this proceeding. I am also being reimbursed for reasonable expenses I
`
`incur in relation to my services provided for this proceeding.
`
`III. Legal Considerations
`
`20. My understanding of the law is based on information provided
`
`by counsel for Baker Hughes.
`
`21.
`
`I understand that a claimed invention is obvious and, therefore,
`
`not patentable if the subject matter claimed would have been considered obvious to
`
`a person of ordinary skill in the art at the time that the invention was made. I
`
`understand that there must be some articulated reasoning with some rational
`
`underpinning to support a conclusion of obviousness. I further understand that
`
`exemplary rationales that may support a conclusion of obviousness include:
`
`(1) simply arranging old elements in a way in which each element performs the
`
`same function it was known to perform, and the arrangement yields expected
`
`results, (2) merely substituting one element for another known element in the field,
`
`and the substitution yields no more than a predictable result, (3) combining
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`elements in a way that was “obvious to try” because of a design need or market
`
`pressure, where there was a finite number of identified, predictable solutions,
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`(4) whether design incentives or other market forces in a field prompted variations
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`in a work that were predictable to a person of ordinary skill in the art, and (5) that
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`some teaching, suggestion, or motivation in the prior art would have led one of
`
`ordinary skill in the art to modify the prior art reference or to combine prior art
`
`references to arrive at the claimed invention, among other rationales.
`
`IV. Task Summary
`
`22.
`
`I have been asked to review the challenged U.S. patent: the
`
`’505 Patent. I have been asked to provide my opinions from the perspective of a
`
`person of ordinary skill, having knowledge of the relevant art, as of November 19,
`
`2001, and the opinions stated in this declaration are from that perspective. The
`
`qualifications and abilities of such a person are described in paragraphs 43-52
`
`below. I have also been asked to consider whether any of my opinions would
`
`change if this date was August 21, 2002 instead of November 19, 2001. They
`
`would not. I am not aware of any developments in that intervening time period
`
`that would have meaningfully altered how a person of ordinary skill, having
`
`knowledge of the relevant art, would have viewed the issues I address.
`
`23.
`
`In preparing this declaration, I have considered this patent in its
`
`entirety and the general knowledge of those familiar with the field of oil and gas
`
`completion and stimulation, and specifically systems for completion and
`
`stimulation, as of November 19, 2001.
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`24.
`
`I have also reviewed the references in their entirety that form
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`the basis for Baker Hughes’ challenge to the ’505 Patent, including the
`
`publications listed in the following table:
`
`Short Title
`
`Publication
`
`’505 Patent
`
`U.S. Patent No. 7,134,505
`
`Thomson
`
`D.W. Thomson, et al., Design and Installation of a Cost-
`Effective Completion System for Horizontal Chalk Wells Where
`Multiple Zones Require Acid Stimulation, SPE (Society for
`Petroleum Engineering) 37482 (1997)
`
`Hartley
`
`U.S. Patent No. 5,449,039
`
`Ellsworth
`
`B. Ellsworth, et al., Production Control of Horizontal Wells in
`a Carbonate Reef Structure, 1999 Canadian Institute of
`Mining, Metallurgy and Petroleum Horizontal Well Conference
`
`Echols
`
`Brown
`
`U.S. Patent No. 5,375,662
`
`U.S. Patent 4,018,272 (“Brown”)
`
`Hutchison
`
`U.S. Patent No. 4,099,563
`
`Kilgore
`
`U.S. Patent No. 6,257,338
`
`Weitz
`
`U.S. Patent No. 4,279,306
`
`Lagrone
`
`Eberhard
`
`K.W. Lagrone, et al., A New Development in Completion
`Methods, SPE 530-PA (1963)
`
`M.J. Eberhard, et al., Current Use of Limited-Entry Hydraulic
`Fracturing in the Codell/Niobrara Formations—DJ Basin, SPE
`(Society for Petroleum Engineering) 29553 (1995)
`
`
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`V.
`
`Field of Technology
`
`25.
`
`The ’505 Patent describes a method and apparatus for
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`selectively stimulating or treating multiple segments of an oil well using ball-
`
`actuated sleeves to open and close ports through a tubing string. See ’505 Patent at
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`1:16-19, 2:35-3:4. Stimulation or treatment of a well generally involves injecting
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`fluid at sufficiently high pressure into a well to create fractures in the formation,
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`which increase the flow of oil and gas from the formation into the wellbore.
`
`A. Wellbore Construction and Completion
`
`26. A well is formed by drilling a hole into a geological formation
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`with oil or gas reserves to form a “wellbore.” Such wellbores include at least one
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`vertical portion descending downward from the earth’s surface, and may include
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`one or more horizontal portions that extend outward from the vertical portion to
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`maximize the length of the wellbore that is within and able to receive oil and gas
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`from an oil-bearing formation.
`
`27. Horizontal drilling became widespread in the 1990s and has
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`been one of the primary drivers behind the increased production of oil and gas in
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`the United States over the past two decades. Oil and gas reservoirs (e.g., shale
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`plays) are typically found in horizontal strata. Horizontal drilling allows drillers to
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`reduce the footprint of oil and gas field development and increase the length of the
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`“pay zone” that is intersected by the wellbore so that the overall production of the
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`well would increase. Horizontal drilling is particularly useful in shale formations,
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`which do not have sufficient permeability to produce economically with a vertical
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`well.
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`28. After a wellbore is formed, it is often lined with pipe or
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`“casing” that can help to protect the wellbore from erosion and maintain its
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`stability during various well operations, such as when oil and gas is extracted from
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`the formation and/or when fluids are injected into the wellbore as described in
`
`more detail below. In cased completions, casing (or liner) is cemented—the
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`annulus between the casing and the wall of the wellbore is filled with cement—to
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`(i) protect the environment and near-surface formations from leakage of reservoir
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`fluids, (ii) improve wellbore stability, (iii) control the location of fracture initiation,
`
`as described below, and (iv) provide greater well serviceability, among other
`
`benefits. Casing also provides a smooth, round surface that devices called
`
`“packers” can seal against to isolate segments of the wellbore, as also described
`
`below. After casing is installed in a wellbore, openings through the casing are
`
`created within hydrocarbon-bearing strata—in a process known in the art as
`
`“perforating”—to allow oil and/or gas to flow from the formation into the
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`wellbore. See, e.g., ’505 Patent at 1:27-29 (Background of the Invention section).
`
`29.
`
`In some applications, a portion of a wellbore in a production
`
`zone is not cased. Such an uncased wellbore is often referred to as an “open hole”
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`and, due to the absence of casing, provides direct access to a hydrocarbon-
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`containing formation. As explained in the Background of the Invention section of
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`the ’505 Patent, the lack of casing “expose[s] porosity and permit[s] unrestricted
`
`wellbore inflow of petroleum products.” ’505 Patent at 1:23-27. At least as early
`
`as 1999, such “[o]pen hole completions ha[d] been the accepted practice for
`
`horizontal wells” in at least some areas. See B. Ellsworth, et al., Production
`
`Control of Horizontal Wells in a Carbonate Reef Structure, 1999 Canadian
`
`Institute of Mining, Metallurgy and Petroleum Horizontal Well Conference
`
`(“Ellsworth”) at p. 1, Abstract; Echols at 1:25-34. In certain formations, the zone
`
`might be left entirely bare, or alternatively include some sand-control and/or flow-
`
`control equipment. See, e.g., Echols at 1:25-34. Unlike cased-hole completions,
`
`open-hole completions generally do not require perforating of the wellbore wall
`
`prior to stimulation operations. Such open-hole completions tend to be popular in
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`horizontal wells, in which cemented installations are more expensive and
`
`technically more difficult. See Echols at 1:25-34; Ellsworth at 8 (“The goal of cost
`
`effective use of horizontals can be enhanced with the ability to segment, and
`
`control production without the need to run and cement liners.”).
`
`30.
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`It is common in both cased and “open hole” completions for a
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`small-diameter pipe generally referred to in the art as “production tubing” to be
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`installed or “run” into the well to provide a path for petroleum products to flow to
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`the surface.
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`31. Historically, petroleum products were produced from a
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`formation thanks to the formation’s high natural formation pressure and
`
`permeability. More recently, when natural formation permeability is not high
`
`enough, a well may be stimulated to enlarge or create new channels within the
`
`formation to allow oil and gas to flow through the formation and into the wellbore.
`
`See ’505 Patent at 1:30-31.
`
`B. Well Stimulation and Treatment
`
`32. A well may be stimulated by pumping a mixture of fluid and
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`additives, such as acid, into the wellbore under pressure. At sufficiently high
`
`pressures, the stimulation fluid fractures or “fracs” the formation, which forms
`
`cracks radiating outward from the wellbore into the formation. In “frac’ing,” the
`
`stimulation fluid typically includes a “proppant” to “prop” open the cracks. Sand
`
`is one type of proppant. Other proppant types include ceramic particles. In a
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`related technique for well stimulation, which may be referred to in the art as
`
`“acidizing,” an appropriate acid is pumped into the formation which chemically
`
`reacts with the formation to create similar conductive channels.
`
`33. A wellbore will typically intersect or cross multiple sections or
`
`“zones” of a formation. Not all intersected zones include oil and gas. See, e.g.,
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`Ellsworth at Figures 7 and 11. Some zones include fluids like water that can be
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`problematic if they enter the wellbore. Ellsworth at 2-3 (“[W]ater or gas
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`breakthrough can be a problem for some of these wells. . . . The ability to establish
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`long term isolation of segments within the reservoir is key to controlling and
`
`optimizing production from these horizontal wells.”). Some zones may be too
`
`small to justify the expense of attempting to produce oil and gas from the zone. It
`
`is therefore often better to isolate the wellbore from these types of undesirable
`
`zones and stimulate only desirable zones.
`
`34. One example of a stimulation technique that is commonly used
`
`in horizontal wells with cemented casings is known as “Plug & Perf.” This
`
`technique involves pumping down the wellbore a bridge plug and perforating guns
`
`to a targeted location in the well, typically starting near the bottom or “toe” and
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`moving toward the “heel”—where the wellbore transitions from horizontal to
`
`vertical The perforating guns are fired to punch small holes in the casing to allow
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`fluid communication between the casing and the formation. The perforating guns
`
`are then removed from the wellbore, and a ball is pumped down to close the pre-set
`
`bridge plug. Once the plug is closed, fracture stimulation fluid (including
`
`proppant) is pumped into the wellbore, where the plug seals lower portions of the
`
`well and diverts the fracture fluids through the perforations to create fractures in
`
`the formation. After each zone (or stage) is completed, the operation is
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`sequentially repeated up-hole until all desired wellbore zones are fractured. The
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`bridge plugs and balls are then milled to open the wellbore and allow oil and gas to
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`flow to the surface. In this “Plug & Perf” approach, the bridge plugs are used to
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`isolate zones within the wellbore.
`
`35. Other approaches use “packers” instead of bridge plugs for
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`isolating zones. Packers are tools that seal around production tubing or liner in the
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`wellbore (whether cased or uncased) to direct stimulation fluid into a desired zone
`
`and prevent its entry into other zones. A single tubing string can include multiple
`
`packers as it is run into the wellbore, making it easier to isolate multiple zones at
`
`once and then stimulate those zones.
`
`36. One example of a system for stimulating or treating zones of a
`
`formation using packers is described in U.S. Patent No. 4,099,563 (“Hutchison”).
`
`As shown in Hutchison’s Figures 2 and 4, inset below, Hutchison injects treatment
`
`fluids through sleeves 20, 21 [blue], each of which includes a seat 44 [purple] that
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`is designed to mate with and be sealed by a specific sized ball [green]. Hutchison
`
`at 3:64-4:59. The sleeve 20 is opened by “dropping” the correspondingly sized
`
`ball 48 into the tubing string to seals against seat 44. Hutchison at 4:49-59. This
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`seal prevents fluid from passing through the seat, and the resulting buildup of fluid
`
`pressure shifts the lower sleeve 20 down into the open position, as shown in Figure
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`Page 15 of 63
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`
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`4, to open the port (annular chamber 36) and allow stimulation fluid (steam) to
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`flow into the tubing string. Hutchison at 4:49-59.
`
`Sleeve [blue]
`
`Seat (44)
`[purple]
`
`Seat (44)
`[purple]
`
`Ball (48) [green]
`
` Sleeve [blue]
`
`37. As shown in Hutchison’s FIG. 1, inset below, upper and lower
`
`sleeves 20 and 21 are positioned to inject stimulation fluid into corresponding
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`
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`zones that are isolated with cup-type packers 22, 23, 24, and 25 to isolate zones
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`within
`
`the
`
`formation.
`
` See
`
`Hutchison at FIG. 1 and 2:51-58.
`
`38. A ball is first
`
`dropped into the tubing string to
`
`Packer
`
`open lower sleeve 20 [blue] to
`
`allow stimulation
`
`fluid
`
`to be
`
`injected into the lower zone that is
`
`isolated between packer cups 22
`
`and 23 [red]. Once the lower zone
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`Packer
`
`is treated, a larger ball 48 is
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`dropped into the tubing string to
`
`open upper sleeve 21
`
`[blue]
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`(which differs from sleeve 20 only
`
`in that sleeve 21 includes a larger
`
`diameter seat 44) to allow the
`
`upper zone between packer cups
`
`22 and 23 to be treated. Hutchison
`
`at 4:60-6:17. A person of ordinary
`
`skill
`
`in
`
`the art would have
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`Packer
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`Sleeve
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`- 17 -
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` Sleeve
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` Packer
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`Page 17 of 63
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`recognized that this process can be repeated for any suitable number of zones,
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`limited only by the number of different sized balls that can fit into the tubing
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`string. In this way, Hutchison permits zones to be selectively treated one at a time.
`
`39. Halliburton developed another example of this system in the
`
`late 1990s in which multiple sliding sleeves were isolated between packers that
`
`could be simultaneously run into the wellbore. See, e.g., D.W. Thomson, et al.,
`
`Design and Installation of a Cost-Effective Completion System for Horizontal
`
`Chalk Wells Where Multiple Zones Require Acid Stimulation, SPE (Society for
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`Petroleum Engineering) 37482 (1997) (“Thomson”). Relative to approaches like
`
`Plug & Perf, described above, Thomson’s ball-actuated, sliding-sleeve “technique
`
`provided a substantial reduction in the operational time normally required to
`
`stimulate multiple zones and allowed the stimulations to be precisely targeted
`
`within the reservoir.” Thomson at 97, Abstract.
`
`C.
`
`Types of Packers
`
`40. While Hutchison used cup-type packers to isolate zones within
`
`a formation (Hutchison at 2:51-58), other types of packers have also been known
`
`for many years. For example, inflatable packers have long been used in both open
`
`hole and cased completions. See, e.g., Echols at 1:43-44 (“Inflatable packers are
`
`preferred for use in sealing an uncased well bore.”); see also ’505 Patent at 1:43-45
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`(Background “[I]nflatable packers may be limited with respect to pressure
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`capabilities as well as durability under high pressure conditions.”).
`
`41. Other alternatives include various “solid body packers.” Solid
`
`body packers (SBPs) extrude one or more resilient packing elements outward by
`
`compressing the packing element(s) along the length of the tubing string, thereby
`
`causing the packing element(s) to be squeezed radially outward to seal the annulus
`
`around the tubing string within the wellbore. As explained in Ellsworth,
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`“[a]lthough the expansion ratios for [solid body packers] are [not] as large as for
`
`inflatables, the carbonate formation in Rainbow Lake generally drills very close to
`
`gauge hole, and effective isolation is possible with these SBP’s.” Ellsworth at 3.
`
`In another example, U.S. Patent No. 6,257,338 (“Kilgore”) explains that its
`
`packers, “sealing devices 30, 32, 34 are representatively and schematically
`
`illustrated . . . as inflatable packers . . . [o]f course, other types of packers, such as
`
`production packers settable by pressure, may be utilized for the packers 30, 32, 34
`
`. . . .” See Kilgore at 4:35-42. Many such solid-body packers are hydraulically
`
`“set” by delivering hydraulic fluid under pressure to a piston that compresses the
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`packing element(s). See, e.g., Ellsworth at 3; Kilgore at 4:35-42.
`
`42.
`
`Ellsworth also explains
`
`that even
`
`though “[h]istorically,
`
`inflatable packers were used for water shut-off, stimulation, and segment testing,”
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`“[m]ore recently, solid body packers (SBP’s) (see Figure 4) have been used to
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`Page 19 of 63
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`establish open hole isolation.” Ellsworth at 3. Ellsworth’s solid body packers
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`“provide a mechanical packing element that is hydraulically actuated . . . to
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`provide a long-term solution to open hole isolation without the aid of cemented
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`liners.” Ellsworth at 3 (emphasis added). “Although the expansion ratios for these
`
`packers are [not] as large as for inflatables, the carbonate formation in Rainbow
`
`Lake generally drills very close to gauge hole, and effective isolation is possible
`
`with these SBP’s.” Ellsworth at 3. The description of “very close to gauge hole”
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`means that the borehole is round instead of oval, and very close in size to the drill
`
`bit, which characteristics can be achieved in formations that are mechanically
`
`competent. Ellsworth illustrates a principle that had been known and applied in the
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`industry for decades, that tools—such as solid-body packers used in the historically
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`more-prevalent cased holes—can also be used, and often are tried and used
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`successfully, in open-hole completions as they have become more common.
`
`VI. A Person of Ordinary Skill in the Art
`
`43.
`
`It is my opinion that a person of ordinary skill in the art as of
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`November 19, 2001 is a person who earned a bachelor of science degree in
`
`mechanical, petroleum, or chemical engineering, or similar degree and had at least
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`two to three years of experience with downhole completion technologies related to
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`fracturing.
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`44.
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`Such a person would have been familiar with the options and
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`considerations described in Section V above. Such a person would have further
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`understood that certain of these options were better suited to some formation or
`
`wellbore types than others, and would have known to consider different types of
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`completions, tools, and configurations depending on formation or wellbore types
`
`and characteristics, such as the ones described in Section V above. Such a person
`
`would have understood the various stimulation methods, and types and uses of
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`packers to perform selective fluid treatment of wellbores—and the use of those
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`methods and techniques in combination with or as substitutes for one another. For
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`example, a person of ordinary skill in the art would have appreciated the possibility
`
`of using acidizing systems to fracture certain carbonate formations, and would
`
`have recognized how tools and components could function and that certain
`
`components, such as hydraulically set solid-body packers, may work better under
`
`certain conditions than other components, such as inflatable packers.
`
`45.
`
`Such a person would have usually worked in a team
`
`environment and, in addition to his or her own skills and experiences and those of
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`other team members, would also have had access to (and been trained and
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`encouraged to seek out) other technical experts, libraries of tools and systems,
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`descriptions, catalogs and technical information relating to well completion
`
`technology and fracturing. Such a person would have also routinely accessed,
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`Page 21 of 63
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`understood, and applied such information in a variety of projects and applications,
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`each with its own unique characteristics and challenges, and would have routinely
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`consulted with team members (and others outside the team) with diverse
`
`educational backgrounds and technical experiences to address these unique
`
`characteristics and challenges.
`
`46.
`
`Such a person would have been a person of ordinary creativity
`
`as well as skill and would have innovated, and interchangeably used systems and
`
`tools, based on the technology developed for different but related applications. For
`
`example, as described in Thomson, persons of ordinary skill in the art developed a
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`“multi-stage acid frac tool” for stimulation operations based on a sliding sleeve
`
`used for circulating operations. See Thomson at 97 (“key element . . . is a multi-
`
`stage acid frac tool (MSAF) that is similar to a sliding sleeve circulating device
`
`. . . .”). In fact, sliding sleeves have been used in many applications of completing
`
`a wellbore and a person or ordinary skill would have understood their value when
`
`approaching any new completions-related challenge. See, e.g., Hutchison (used for
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`steam injection); Thomson (used for stimulation); Weitz (used for washing and
`
`circulating); Ellsworth at 8 (used for testing); Hartley (used for perforating
`
`lining/casing or stimulation); Echols (used for setting packers or stimulation).
`
`47.
`
`Such a person would have also been familiar with, and
`
`motivated to select tools and characteristics for completion of a well, based on
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`- 22 -
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`Page 22 of 63
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`various considerations related to the economy of a well. For example, such a
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`person would have understood that, all other things being equal, it is more
`
`expensive to complete a cased well than to complete an open hole well. This is
`
`due primarily to the additional cost of the casing and cement, the cost of the
`
`additional labor to install the casing and cement, and the additional time needed to
`
`install the casing and cement. Such a person would therefore have
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