DISPUTE RESOLUTION in the OIL & GAS INDUSTRY : NON-MEDIATION ADR a presentation by HEW R. DUNDAS Chartered Arbitrator DipICArb CEDR-Accredited Mediator
OVERVIEW of PRESENTATION Introduction Dispute Resolution Options International Disputes Oil & Gas Industry A Case Study Conclusions
DISPUTE RESOLUTION OPTIONS Litigation Arbitration - Domestic/International Expert Determination Mediation Other ADR Advantages and Disadvantages
INTERNATIONAL DISPUTES Difficulties of Litigating International Commercial Arbitration Substantive & Procedural Laws Institutions and Tribunals Finality Enforceability New York Convention 1958
FORMS OF ADR Mediation/Conciliation Executive Negotiation Early Neutral Evaluation (ENE) Private Mini-Trials Med-Arb and Arb-Med Adjudication and DRBs Other/None of the Above
CURRENT ISSUES Oil Industry Preference for Litigation Selection of Arbitral Tribunals Failure to Grasp ADR Options Fully Ignorance of non-Mediation ADR Expert Determination Excessive Lawyer Involvement Macho Management/Lawyers
CASE STUDY: CATS DISPUTE CATS - North Sea Gas Pipeline Capacity Reservation by 3 rd Party User Send Or Pay Obligation; £45m paid Fall In Gas Price – Contract Uneconomic High Court/CoA/House of Lords Did the Subsea valve work ? Was CATS “Available “ ? £100m at stake; £8-12 million legal costs
CONCLUSIONS Oily Myth 1: There is Certainty in a Judgement Oily Myth 2: Need Judge for High Value Disputes Widen The Options Practical Decisions for Practical Disputes Judges are NOT Engineers etc