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DISPUTE RESOLUTION in the OIL & GAS INDUSTRY : NON-MEDIATION ADR. a presentation by HEW R. DUNDAS Chartered Arbitrator DipICArb CEDR-Accredited Mediator www.dundasarbitrator.com. OVERVIEW of PRESENTATION. Introduction Dispute Resolution Options International Disputes Oil & Gas Industry
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DISPUTE RESOLUTION in the OIL & GAS INDUSTRY :NON-MEDIATION ADR a presentation by HEW R. DUNDAS Chartered Arbitrator DipICArb CEDR-Accredited Mediator www.dundasarbitrator.com
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 3rd 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