WEATHERFORD INTERNATIONAL, LLC, et al.
`
`EXHIBIT 1012
`
`PACKERS PLUS ENERGY SERVICES, INC.
`
`WEATHERFORD INTERNATIONAL, LLC, et al.
`V.
`
`Expert Report
`
`Re: Halliburton Energy Services, Inc. and Halliburton Group Canada
`v. Packers Plus Energy Services, Inc., et al.
`No. CV—44,964
`In the 23 8”‘ Judicial District Court of Midland County, Texas
`
`Prepared for
`
`Packers Plus Energy Services, Inc. et al.
`&
`
`Counsel
`
`By
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`Kevin Trahan
`
`Trahan Oilfield Consulting, LLC
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`El
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`
`
`April 27, 2007
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`
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`EXHIBIT 1012
`
`PACKERS PLUS ENERGY SERVICES, INC.
`
`WEATHERFORD INTERNATIONAL, LLC, et al.
`V.
`
`Expert Report
`
`Re: Halliburton Energy Services, Inc. and Halliburton Group Canada
`v. Packers Plus Energy Services, Inc., et al.
`No. CV—44,964
`In the 23 8”‘ Judicial District Court of Midland County, Texas
`
`Prepared for
`
`Packers Plus Energy Services, Inc. et al.
`&
`
`Counsel
`
`By
`
`Kevin Trahan
`
`Trahan Oilfield Consulting, LLC
`
`El
`
`
`
`April 27, 2007
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`T
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`I
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`f
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`n ents
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`A.
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`Qualifications to Serve as Expert
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`1. Professionai Background .............................................. ..
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`pg. 5
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`2. Baker Hughes v. Weatherford, Trahan, et al. . ......... ..
`
`pg.
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`9
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`B.
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`Opinion
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`1.
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`Information Reviewed ................................................... .. pg.
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`2. Packer Development & Design ...................................... .. pg.
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`2.1
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`New Product Development ........................................... .. pg.
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`2.2
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`Reverse Engineering ................................................... .. pg.
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`3. Claimed Trade Secrets ................................................... .. pg.
`
`3.1
`
`Shear Screws .............................................................. .. pg.
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`3.2
`
`O-rings & Seal Surfaces .......
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`...................................... .. pg.
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`3.3 Materials Used in Packets............................................ .. pg.
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`3.4
`
`Stub Acme Threads..................................................... .. pg.
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`3.5
`
`API Tubing Threads ...................................................... .. pg.
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`3.6
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`API Nominal Tubing ID ................................................ .. pg.
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`3.7
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`Chamfer Callouts.......................................................... .. pg.
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`3.8
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`Lock Ring Design .......................................................... .. pg.
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`3.9
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`Glass Bead Peening ...................................................... .. pg.
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`3.10 Pump Out Ping and other Packers Plus Products............ .. pg.
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`11
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`12
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`12
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`14
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`20
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`20
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`22
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`24
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`29
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`32
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`4. Rockseal v. Wizard II Design Comparison ....... .. pg.
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`4.1 Mandrel ............................................................. ..pg.
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`4.2
`
`Shear Screws .................................................... .. pg.
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`4.3
`
`Top Connection ................................................. .. pg.
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`4.4
`
`Lock Ring..........................................
`
`............... .. pg.
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`4.5
`
`Packing Element................................................. ..pg.
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`4.6
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`Shear Ring ......................................................... .. pg.
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`Patentabiiity of Rockseal Design Features ....... .. pg.
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`Conclusion ............................................................... .. pg.
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`5.
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`6.
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`43
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`45
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`45
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`46
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`47
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`49
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`49
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`5 1
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`EXHIBITS
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`I have been retained by the defendants in the above-referenced iawsuit to serve
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`as an expert witness. This report and my opinions and testimony concern and
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`address the design, manufacture, and marketing of packers used in the oil and
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`gas services industry. As my resume indicates, I have had considerable
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`experience and expertise in the area of designing downhoie toois including many
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`types of packers. Based on that expertise, as further elaborated in my resume
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`and in the body of this opinion, I consider myself qualified to provide detailed
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`responses to each of the opinions reached by Berryman in his report, as weil as
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`other allegations made by Hailiburton in this lawsuit. Those areas inciucie, but
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`are not limited to:
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`1. The question whether any of the alleged “trade secrets” relied on by
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`Halliburton are in fact trade secrets;
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`2. The question whether there is any evidence that Packers Plus actually
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`used any of those alieged trade secrets in any of its products;
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`3. The ability of any downhole tool manufacturer to obtain from pubiicly
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`avaiiabie source the information that Halliburton ciaims to be trade
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`secrets;
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`4. The question whether the Rockseal packer was a novei, patentabie
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`invention;
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`5. Practices and procedures concerning reverse engineering, in particular as
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`they reiate to products at issue in this iawsuit.
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`My knowledge, experience and expertise provide me with a strong foundation
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`and quaiification to address each of these issues. However, I have aiso relied to
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`some degree on the opinions expressed by Ron Britton whose vast operationai
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`experience in the field provides yet another valuable perspective on many of
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`these issues.
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`A. Qualifications to Serve as Expert
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`1. Professional Background 1
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`My career began in 1992 following graduation from Texas A&M University.
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`I was
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`immediately employed by Baker Service Tools, a division of Baker Hughes, Inc.,
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`as design engineer trainee.
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`In this capacity I was involved in design reviews,
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`drafting, and testing of many types of down-hole toois, including many types of
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`packers. During my first year with Baker Hughes, Inc. the divisional operating
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`structure was reorganized by merging Baker Service Tools with Baker Oil Tools.
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`The newly merged division retained the name of Baker Oil Toois. The new
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`division included ail of the production packers and ali of the service packers?
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`During this time I was able to design and test both production and service type
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`packers.
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`‘ My professional biography is attached as Exhibit T01
`2 A service packer is a packer utiiized in the remediation or stimulation of a well, while a production packer
`is a packer utilized during the production of a weil. Many types of packers can be used both as service
`packers and as production packers.
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`I was then transferred to Lafayette, Louisiana in order to gain experience with
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`servicing and instailing packers, as well as other types of clown-hole tools.
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`Within 3 months of arriving in the Lafayette operation I was installing packers in
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`the field with no on—site supervision. Within 6 months I was training others.
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`In
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`this capacity I would take other employees to rig site locations and train them on
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`the installation of packers.
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`When the vice—president of engineering for Baker Oil Tools received a report that
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`I was being used a trainer it was decided that I shouid be transferred back to the
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`engineering department in Houston, Texas. His stated rationale for this move
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`was that the engineering department was paying my wages and expenses in
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`order for me to be trained, and since I was training others he had determined
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`that I had advanced to the point that I could add vaiue on critical projects as a
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`lead design engineer.
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`I then moved to Houston where I managed projects and designed and tested
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`various types of liner hanger3 and packer equipment. During this time it was
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`important that I had thorough knowledge of o~ring dimensioning standards,
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`shear screws, standard elastomer materials, standard metal and non—metai
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`materials, stub acme threads, API tubing and casing threads, chamfers, lock
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`3 Liner hangers are tools that are utilized to hang and cement well casings inside of previously set casings.
`Liner hanger systems typically involve the use of slip and cone arrangements and annular seaiing
`arrangements similar to those used in service and production packers.
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`rings, as weii as other things in order to design packers and various other types
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`of tools. Within 2 years I was promoted to a region engineer's position in New
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`Orleans, Louisiana.
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`In this capacity I performed the function of technical support
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`for the operations and sales departments. Tasks performed included troubie-
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`shooting problem jobs, supporting salespeopie in seiiing new technology that
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`they did not understand, and installation of new packer and liner hanger
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`technoiogy used on high profile projects in the Gulf of Mexico.
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`In approximately 6 months I was promoted to the position of Gulf Coast
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`operations engineering manager.
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`In this capacity I supervised 9 to 10 region
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`engineers performing the same function that I previously performed as a region
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`engineer.
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`In approximateiy 1 year I was promoted to the position of account
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`sales manager.
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`In this role I managed a sales force of 7-10 people responsible
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`for ali Baker Oil Toois product iines for the largest Baker Oil Toois customer at
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`the time, Shell Offshore.
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`In 1998 EVI and Weatherford were separately recruiting me to help them grow
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`their respective businesses.
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`I went to work for EVI in a global business
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`development role. Within 1 week EVI acquired Weatherford and the new
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`company retained the Weatherforci name.
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`In the new organization I took on the
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`business development role for the iiner hanger business in the western
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`hemisphere. Within 1 year I was promoted to Gulf Coast region manager for all
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`completion product lines, including packers and liner systems. Within another
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`year I was promoted to the position of globai product line manager for liner
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`systems, where I iead the strategic direction and marketing efforts for the liner
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`systems product line.
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`My next promotion was to the position of vice president, marketing (Weatherford
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`Compietion Systems division) where I lead the group of all global product line
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`managers for Weatherford Completion Systems.
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`The next position that I accepted inciuded a transfer to Calgary, Alberta, Canada
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`as the vice president of Canadian operations for Weatherford Completion
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`Systems.
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`In this role I lead the effort of merging several packer company
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`acquisitions.
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`In December 2001 the U.S. and Canada operations were combined from a
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`management standpoint within Weatherford Compietion Systems.
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`I was
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`promoted to the position of vice president of North American operations for
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`Weatherford Completion Systems. The promotion included a transfer to
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`Houston, Texas.
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`In mid—2003 I decided to leave the “grind" of management in large corporations
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`so that I could be a better father and husband, and so that I could chase my
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`dream of being an entrepreneur. Since this time I have been involved in
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`designing down-hole tools including packers.
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`I am the soie inventor on a packer
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`seating technology patent that I developed within Braveaux Services.
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`It is one of
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`10 U.S. patents of which I am an inventor. Braveaux Services was acquired by
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`Aiiamon Tool Company in January 2005, at which time I started Trahan Oilfield
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`Consuiting, LLC. This company provides engineering, marketing, and
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`management consulting services to oii and gas service companies, as weli as
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`expert services. Prior to this case, I have served as an expert, or consultant, in
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`three cases that specifically related to packers. Ali three cases were for the same
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`defendant and all three cases invoived aileged failures of packers. I have given
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`deposition testimony in at least one of these cases. I beiieve that my education
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`in mechanical engineering along with my direct and extensive experience in the
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`design, manufacture, and installation of packers with Baker Hughes,
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`Weatherford, and in my own businesses quaiify me as an expert in this case.
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`2. Baker Hughes V. Weatherford, Trahan, at al.
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`I have first hand experience dealing with aiiegations very similar to those in this
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`case in that I was a party to a similar action between Baker Hughes and
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`Weatherford. In that case Baker Hughes filed a suit against Weatherford and me,
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`as well as four other individuais, alieging that trade secrets were stoien by the
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`named individuals for the benefit of Weatherford.
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`In simple terms and from the
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`standpoint of an engineer, for something to be considered a “trade secret" it
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`5. Patentab/Wm of Rackseal Design Features
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`Although the Rockseal packer has design improvements over the Wizard I and II
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`packers it does not have patentable features in my expert opinion.
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`I agree with
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`Mr. Berryman’s standard of determining patentabiiity which includes: (1) novelty,
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`(2) nonobviousness, and (3) utility. Combination of the features that are utilized
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`in the design of the Rockseai is an obvious evolution in my opinion and therefore
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`not patentable. Prior to 1999 I was aware of different tools that incorporated
`features that exist in the Rockseal. Specificaily, packers with two sets of packing
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`elements existed on single bodies. Hydraulic setting mechanisms existed for
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`setting packers and for setting energy requiring elements on either side of a
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`hydraulic setting mechanism. Anti~preset devices are used, and were used prior
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`to 1999, to prevent the inadvertent premature shift of the setting mechanism
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`while running the tool in the wellbore.
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`Mr. Berryman also states on page 37 of his report that a tool that uses Rockseal
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`features in combination with appiying that tool in open hole or horizontal open
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`hoie may be patentabie. Cased hoie tools, including packers, have been used in
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`open hoie applications for many years.
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`In my opinion use of a tool with Rockseal
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`type features in open hole does not pass the patentability standard of novelty or
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`nonobviousness. The open hole application of tools that were originaily designed
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`for cased hoie has been common place in the industry since I began working in
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`the industry in 1992. There is nothing novel or nonobvlous about such an
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`application.
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`In this case Hailiburton and Halliburton’s experts cornpleteiy ignore the standards
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`utiiized by virtually ail companies that design packers and other down hole tools.
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`They pretend that these commonly known standards are Somehow only in the
`knowledge of Haliiburton. It is obvious that Halliburton is ignoring things that
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`are in the knowledge of it's own experts.
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`Respectfully Submitted,
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`2” ‘M
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`Kevin Trahan
`President
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`Trahan Oiifield Consulting, LLC
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