throbber
1
`
`FEDERAL COURT
`
`Court File No. T-1741-13
`
`B E T W E E N:
`PACKERS PLUS ENERGY SERVICES INC.
`
`Plaintiff
`(Defendant by Counterclaim)
`
`- and -
`
`ESSENTIAL ENERGY SERVICES LTD. and TRYTON TOOL SERVICES
`LIMITED PARTNERSHIP
`
`Defendants
`(Plaintiffs by Counterclaim)
`
`Court File Nos. T-1569-15, T-1728-15, T-2088-15
`
`B E T W E E N:
`PACKERS PLUS ENERGY SERVICES INC. and RAPID COMPLETIONS LLC
`Plaintiffs
`(Defendants by Counterclaim)
`
`- and -
`
`WEATHERFORD INTERNATIONAL PLC, WEATHERFORD CANADA LTD.,
`WEATHERFORD CANADA PARTNERSHIP and HARVEST OPERATIONS CORP.
`BAKER HUGHES CANADA COMPANY
`RESOURCE WELL COMPLETION TECHNOLOGIES INC. and RESOURCE
`COMPLETION SYSTEMS INC.
`
`Defendants
`(Plaintiffs by Counterclaim)
`BAKER HUGHES INCORPORATED
`______________________________________________________________
`AND BAKER HUGHES OILFIELD
`OPERATIONS, INC.
`TRIAL - VOLUME 9
`Exhibit 1036
`______________________________________________________________
`BAKER HUGHES INCORPORATED
`Held in the City of Calgary, Province of Alberta, Thursday,
`AND BAKER HUGHES OILFIELD
`February 16, 2017, the Honourable Justice J. O'Reilly
`presiding.
`OPERATIONS, INC. v. PACKERS
`PLUS ENERGY SERVICES, INC.
`IPR2016-00596
`
`Page 1 of 14
`
`

`

`1
`
`FEDERAL COURT
`
`Court File No. T-1741-13
`
`B E T W E E N:
`PACKERS PLUS ENERGY SERVICES INC.
`
`Plaintiff
`(Defendant by Counterclaim)
`
`- and -
`
`ESSENTIAL ENERGY SERVICES LTD. and TRYTON TOOL SERVICES
`LIMITED PARTNERSHIP
`
`Defendants
`(Plaintiffs by Counterclaim)
`
`Court File Nos. T-1569-15, T-1728-15, T-2088-15
`
`B E T W E E N:
`PACKERS PLUS ENERGY SERVICES INC. and RAPID COMPLETIONS LLC
`Plaintiffs
`(Defendants by Counterclaim)
`
`- and -
`
`WEATHERFORD INTERNATIONAL PLC, WEATHERFORD CANADA LTD.,
`WEATHERFORD CANADA PARTNERSHIP and HARVEST OPERATIONS CORP.
`BAKER HUGHES CANADA COMPANY
`RESOURCE WELL COMPLETION TECHNOLOGIES INC. and RESOURCE
`COMPLETION SYSTEMS INC.
`
`Defendants
`(Plaintiffs by Counterclaim)
`
`______________________________________________________________
`TRIAL - VOLUME 9
`______________________________________________________________
`Held in the City of Calgary, Province of Alberta, Thursday,
`February 16, 2017, the Honourable Justice J. O'Reilly
`presiding.
`
`Page 1 of 14
`
`

`

`APPEARANCES:
`
`R. H. C. MacFarlane
`(Via Videoconference)
`J. W. Spicer
`M. Burgess
`D. Cameron
`A. Creber
`W. Boyer
`A. Prenol
`A. Turco
`
`A. Bernstein
`Y. Bienenstock
`S. O'Grady
`L. Jackson
`
`D. Madsen
`(Via Videoconference)
`E. Nuttall
`D. McGrath
`M. O'Brien
`D. Harper
`B. Stevens
`E. Cox
`H. Buchanan
`E. Lavoy
`D. Halvorsen/
`S. Petryshyn
`
`2
`
`COUNSEL FOR THE PLAINTIFFS
`
`COUNSEL FOR THE PLAINTIFFS
`
`COUNSEL FOR ESSENTIAL ENERGY
`SERVICES LTD. AND TRYTON TOOL
`SERVICES LIMITED PARTNERSHIP
`COUNSEL FOR RESOURCE WELL
`COMPLETION TECHNOLOGIES INC.
`
`COUNSEL FOR WEATHERFORD
`AND HARVEST OPERATIONS
`
`COUNSEL FOR BAKER HUGHES CANADA
`COMPANY
`
`REGISTRAR
`USHER
`COURT REPORTERS
`
`Page 2 of 14
`
`

`

`3
`
`TABLE OF CONTENTS
`
`Description Page
`ALFRED POWELL, Affirmed, Appearing by Videoconference,
`7
`Examined by Mr. Madsen
`Cross-Examination by Mr. MacFarlane
`
`34
`
`Re-Examination by Mr. Madsen
`
`MICHAEL ROY CHAMBERS, SR., Previously Sworn, Examined
`by Mr. Prenol
`Cross-Examination by Mr. Creber
`
`JAMES GAMBRELL KING, Affirmed, Examined by Mr. McGrath
`
`Cross-Examination by Mr. Creber
`
`Re-Examination by Mr. McGrath
`
`55
`
`59
`
`73
`
`106
`
`150
`
`196
`
`Page 3 of 14
`
`

`

`4
`
`EXHIBITS
`
`No. Description Page
`D-10
`Completion proposal 01-SEP-01
`14
`
`D-11
`
`Sanjel fracture treatment proposal
`
`D-12
`
`D-13
`
`D-14
`
`Sanjel post-fracture treatment report, October
`23 to 25, 2001, watermarked confidential
`Headington Oil fax Sep-14-01 thoughts and
`concerns
`Packers Plus proposal and quote
`
`P-28
`
`Colour copy of completion proposal 01-Sep-01
`
`P-29
`
`Colour copy of completion proposal 05-Sep-01
`
`P-30
`
`Colour copy of completion proposal 11-Oct-01
`
`I-1
`
`I-2
`
`D-15
`
`(For identification) Signed statement of
`Alfred R. Powell
`(For identification) Email from Alfred R.
`Powell to Joshua Spicer April 16, 2015
`Affidavit of Michelle Lopez
`
`D-16
`
`CV of James King
`
`P-31
`
`Baker Hughes business code of conduct 2013
`
`P-32
`
`Baker Hughes business code of conduct 2002
`
`P-33
`
`P-34
`
`P-35
`
`Video FracPoint open-hole fracture completion
`system
`SPE 133540 New Technology in the Bakken Play
`Increases the Number of Stages in
`Packer/Sleeve Completions
`Baker Hughes slide presentation, September 10
`to 12, 2012
`
`21
`
`21
`
`24
`
`26
`
`44
`
`44
`
`48
`
`54
`
`54
`
`105
`
`125
`
`161
`
`167
`
`168
`
`183
`
`188
`
`Page 4 of 14
`
`

`

`5
`
`P-36
`
`Engineering change notice N728-04
`
`P-37
`
`Gowling WLG letter January 19, 2017
`
`194
`
`195
`
`Page 5 of 14
`
`

`

`6
`
`(COURT RESUMED AT 9:32 A.M.)
`REGISTRAR:
`
`of the trial.
`
`Court is resumed. Day nine
`
`For the record, witness, Mr. Alfred Powell,
`counsel, Mr. David Madsen, counsel, Mr. Robert
`MacFarlane, appearing via videoconference from Colorado.
`Court reporter in attendance in Colorado is Sandra Bray
`of Hunter & Geist.
`JUSTICE:
`
`Good morning, all. Can I be
`
`heard?
`
`Good morning, Justice
`MR. MADSEN:
`O'Reilly. I wonder if it might be acceptable for your
`leave for us to sit down while we examine. The boardroom
`is not set up for standing and you may not even be able
`to see the top of my head as we speak right now.
`JUSTICE:
`In fact, I can only see your
`left elbow, so.
`MR. MADSEN:
`pull closer, thank you, sir.
`Justice O'Reilly, I
`MR. MACFARLANE:
`have to apologize, I didn't realize that we would be
`gowned for this, so I have not worn my gown.
`JUSTICE:
`I can still hear you.
`MR. MACFARLANE:
`Thank you.
`JUSTICE:
`Mr. Madsen?
`MR. MADSEN:
`So sir, Mr. Powell is here
`and that is the first witness for today, so if we can
`deal with his -- we are going to affirm as opposed to
`
`Then I will sit and I will
`
`1 2 3 4 5 6 7 8 9
`
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`Page 6 of 14
`
`

`

`188
`
`MR. CREBER:
`
`Thank you.
`
`EXHIBIT NO. P-35 - Baker Hughes slide presentation,
`September 10 to 12, 2012
`Mr. King, you may
`Q
`MR. CREBER:
`remember in January of this year, there was some written
`interrogatories that were permitted and presumably you
`were involved in providing answers on those?
`A
`Yes.
`Q
`And you were given certain documents
`and asked certain questions. The first of these
`documents which starts off as an engineering change
`notice.
`
`I believe you told us or through your
`counsel as a written interrogatory that this document
`came out of the files of Baker Hughes in the United
`States?
`
`There were a number of files that were
`A
`provided that I got to see that were provided through
`counsel.
`
`Let me assist you. I believe the
`Q
`answer we got, the question that was asked was: Please
`confirm that Exhibit 2024 which is at the bottom --
`sorry. I apologize. We may have to clear the courtroom.
`Baker Hughes has insisted that this is highly
`confidential?
`
`No, I'm just saying there
`MR. MCGRATH:
`were answers given to this, so I think in fairness, the
`
`1 2 3 4 5 6 7 8 9
`
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`Page 7 of 14
`
`

`

`189
`
`witness should have the answers to the interrogatories
`before you.
`
`Sure, but do you wish to
`MR. CREBER:
`clear the courtroom or not, this is your client's
`document?
`
`MR. MCGRATH:
`
`I will see what questions
`
`you ask.
`
`I'm afraid that I might ask
`MR. CREBER:
`a question, it might be out. It's up to you. We were
`just told it's highly confidential. I don't want to
`disrespect that, even though there's no signed written
`agreement.
`
`No, actually we didn't say
`MR. MCGRATH:
`that, Mr. Creber is making up evidence again, but go
`ahead and ask your questions.
`Okay, if my friend has no
`MR. CREBER:
`objection, I prefer to do it in open court. I just did
`not want to disrespect anyone else's concern.
`Q
`MR. CREBER:
`Sir, there were some
`written questions asked relating to this, and answers
`were provided and maybe I can give you a copy?
`A
`Please.
`Q
`So you can follow along. Does the
`court need one or would it be better not -- let me
`provide the court one, subject to my friend's concerns.
`We were going to read this in anyways, so?
`JUSTICE:
`Okay.
`MR. CREBER:
`Sorry, I only have two
`
`1 2 3 4 5 6 7 8 9
`
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`Page 8 of 14
`
`

`

`190
`
`Sir, if you go to the
`
`right now. I will have to find a third copy. Oh, I do
`have a third copy. My bad.
`Q
`MR. CREBER:
`third page of this document?
`A
`Of which one?
`Q
`The one with Gowling WLG on the front?
`A
`This one?
`Q
`Yes. It says: Appendix A Written
`Interrogatories?
`Yes.
`A
`Question 1 was: (As Read)
`Q
`Please confirm that Exhibit 2024
`attached hereto.
`And I think you will see on the other
`document I handed to you, it says Exhibit 2024 in the
`lower right-hand corner.
`A
`Yes.
`Q
`And entitled: (As Read)
`Engineering change notice and consists
`of 34 pages was found in the files of
`Baker Hughes and was produced as part of
`the counterpart U.S. litigation by Baker
`Hughes.
`And the answer we received, which you have
`to flip through.
`A
`
`Are you going to hand that to me as
`
`well.
`
`Q
`
`It's in there, just try to find it?
`
`Page 9 of 14
`
`1 2 3 4 5 6 7 8 9
`
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`

`

`191
`
`Okay.
`A
`At the second last page, there's a
`Q
`letter -- well, one -- third last page there's a letter
`dated January 30th, 2017, from Mr. McGrath, item 1 says:
`(As Read)
`
`Exhibit 2024 is confirmed as being
`produced in U.S. litigation by Baker
`Hughes.
`Yes, sir, I see that.
`A
`And you accept that as I assume you
`Q
`were involved in confirming the accuracy of that answer?
`A
`I was.
`Q
`So we can agree that 2024 came out of
`the files of Baker Hughes in the United States?
`A
`These pages -- Exhibit 2024 which is a
`bunch of pages are confirmed as being produced in U.S.
`litigation by Baker Hughes. Yes.
`Q
`Thank you. And there is a couple of
`pages in here that were interesting, I think you will see
`that these pages, for instance, on the first page, it has
`a date of December 23, 2004.
`A
`That is the date on the page, yes.
`Q
`And some of the other documents in
`here, page 4 of 34, has a planned date, 3 C date and
`estimated completion date and those would be month and
`year, wouldn't they, March '05 and May '05?
`A
`I presume so, yes.
`Q
`Right. And elsewhere on here, you
`
`1 2 3 4 5 6 7 8 9
`
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`Page 10 of 14
`
`

`

`192
`
`will see there's a plan for development of tools?
`Agreed?
`
`A
`
`Okay, which page are you talking
`
`about?
`
`Well, all the way up to page 13.
`Q
`I have seen the documents, yes.
`A
`And page 13, this one says
`Q
`Petro-Canada on it. It has something in the upper
`left-hand corner that says IsoFrac system?
`A
`That's what the page says.
`Q
`And there's some names on the bottom,
`Woody Randall in the middle, and Bruce Bond.
`A
`Those appear to be on the page.
`Q
`Are you aware those are Packers Plus
`
`employees?
`
`I don't know.
`A
`Okay. Are you aware that the phone
`Q
`numbers there are Packers Plus phone numbers?
`A
`I don't know.
`Q
`You don't know how your company got
`
`this document?
`
`I don't know.
`A
`You would agree that this appears to
`Q
`be a system involving multiple packers and multiple frac
`sleeves for use in an open-hole?
`A
`I think the page speaks for itself.
`Q
`Okay. And can you read that it --
`under -- right underneath the left-hand column in the box
`
`1 2 3 4 5 6 7 8 9
`
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`Page 11 of 14
`
`

`

`193
`
`where it says: Red Deer, it says: Contains confidential
`information?
`
`I can see that on the page.
`A
`Okay. Was that your company's
`Q
`confidential information?
`A
`I don't know.
`Q
`Okay. If you turn to the -- behind
`the tab, this is a document marked Exhibit 2025. Justice
`O'Reilly, we will be introducing 2025 during our case?
`JUSTICE:
`Okay.
`You will see that this
`Q
`MR. CREBER:
`instead of saying IsoFrac, it says Packers Plus in the
`top left-hand corner?
`A
`That's what the page says.
`Q
`And if you look at where it says:
`Contains confidential information, it's more readable.
`You can see it reads: Contains
`confidential information. This proposal end quote is
`governed by Packers Plus general terms and conditions.
`A
`I see that on the page.
`Q
`Okay. And this drawing on page 13
`would appear to be the same drawing with some changes.
`Agreed?
`
`They look similar. But I think that
`
`A
`speaks for itself.
`Okay. And in your pleadings in this
`Q
`case, there's an allegation that your company did not
`copy Packers Plus's system?
`
`1 2 3 4 5 6 7 8 9
`
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`Page 12 of 14
`
`

`

`194
`
`Yes.
`A
`Is that a correct allegation or is
`Q
`that an incorrect allegation?
`A
`That is true. That is true.
`Q
`It's true, even though you had a
`Packers Plus -- it would appear you had a Packers Plus
`diagram in your design team when they designed your
`system?
`
`I don't know when, how, or what
`A
`regarding these documents being in a stack of papers. I
`can't answer that. I don't know.
`Q
`Okay. It certainly -- well, I will
`leave it at that.
`Justice O'Reilly, I would
`MR. CREBER:
`like to mark the first document and leave a number to be
`identified later for the second document. So that should
`be P?
`
`JUSTICE:
`
`36.
`
`EXHIBIT NO. P-36 - Engineering change notice N728-04
`MR. MCGRATH:
`And Justice O'Reilly, we
`should probably be entering as an exhibit my letter of
`January 30th explaining this, since Mr. King referred to
`it, and my friend referred to it.
`MR. CREBER:
`I have no objection. That
`was the excerpted copy of our proposed read-ins. We can
`do it now or we can do it later.
`JUSTICE:
`Let's do it now.
`
`1 2 3 4 5 6 7 8 9
`
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`Page 13 of 14
`
`

`

`195
`
`So that should be P-37. Is
`MR. CREBER:
`the written interrogatories with the written response
`that we were intending to read in.
`JUSTICE:
`All right.
`
`EXHIBIT NO. P-37 - Gowling WLG letter January 19, 2017
`Q
`MR. CREBER:
`Oh, just one question,
`Mr. King. While you were testifying with Mr. McGrath,
`you talked about all the papers you wrote for SPE?
`A
`I referred to them, yes.
`Q
`We did OnePetro search while we were
`looking and we only found six papers, is that
`approximately right?
`A
`That's approximately right. I have
`also written articles that were in journals.
`Q
`Okay, but I just wanted to get a size
`of an idea of how many papers. So six is right?
`A
`Six sounds about right. I can't
`remember exactly, but six sounds about right. Some of
`those were co-authored with operators like this one.
`Q
`Oh, and you talked also with
`Mr. McGrath about the importance of intellectual property
`to your company.
`Yes.
`A
`Would you agree with me that
`Q
`intellectual property is even more important to a smaller
`company? That may be asking an opinion. I will withdraw
`the question.
`
`1 2 3 4 5 6 7 8 9
`
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`Page 14 of 14
`
`

This document is available on Docket Alarm but you must sign up to view it.


Or .

Accessing this document will incur an additional charge of $.

After purchase, you can access this document again without charge.

Accept $ Charge
throbber

Still Working On It

This document is taking longer than usual to download. This can happen if we need to contact the court directly to obtain the document and their servers are running slowly.

Give it another minute or two to complete, and then try the refresh button.

throbber

A few More Minutes ... Still Working

It can take up to 5 minutes for us to download a document if the court servers are running slowly.

Thank you for your continued patience.

This document could not be displayed.

We could not find this document within its docket. Please go back to the docket page and check the link. If that does not work, go back to the docket and refresh it to pull the newest information.

Your account does not support viewing this document.

You need a Paid Account to view this document. Click here to change your account type.

Your account does not support viewing this document.

Set your membership status to view this document.

With a Docket Alarm membership, you'll get a whole lot more, including:

  • Up-to-date information for this case.
  • Email alerts whenever there is an update.
  • Full text search for other cases.
  • Get email alerts whenever a new case matches your search.

Become a Member

One Moment Please

The filing “” is large (MB) and is being downloaded.

Please refresh this page in a few minutes to see if the filing has been downloaded. The filing will also be emailed to you when the download completes.

Your document is on its way!

If you do not receive the document in five minutes, contact support at support@docketalarm.com.

Sealed Document

We are unable to display this document, it may be under a court ordered seal.

If you have proper credentials to access the file, you may proceed directly to the court's system using your government issued username and password.


Access Government Site

We are redirecting you
to a mobile optimized page.





Document Unreadable or Corrupt

Refresh this Document
Go to the Docket

We are unable to display this document.

Refresh this Document
Go to the Docket