Midstream, Terminals, Distribution
Watson Millican & Company brings together considerable technical expertise, operating company experience, and commercial knowledge to assist clients with unique issues in the storage and distribution of crude oil, LPG and petroleum products, such as gasoline, diesel and jet fuels, along with issues in the natural gas and NGL midstream sector.
Midstream assets provide the storage, processing, treatment and separation for the production of natural gas and NGLs. Terminals serve as central locations for storage, the origin of distribution pipelines, and for loading and unloading of ships, barges, rail and trucks. They are key logistical assets which facilitate the movement of materials from producers to end users.
We have led audits of operating and measurement practices, including tests for adherence to contract requirements and standard practice. Our consultants have performed numerous valuations and due diligence associated with an acquisition or divestiture of assets. Our investigations of accidents, including explosions, fires and injuries, have been executed for operating companies, as well as legal and insurance clients.
Litigation Support
MTBE Contamination Dispute
Assisted in defence of oil companies charged with supplying gasoline containing the additive MTBE, which had been alleged to have contaminated water supplies. Led the preparation of a comprehensive report on refinery supply, pipeline distribution, and retail marketing of gasoline in the area subject to the dispute.
Incident Investigation
Fire at Retail Gasoline Station
Investigated cause of flash fire at retail gasoline station during tanker truck unloading. Reviewed owner and contractor operating and safety procedures and practices. Reviewed equipment design. Reconstructed incident from surveillance video, interviews and physical evidence.
Petroleum Products Terminal and Pipeline Leakage
Assisted attorneys in the review and assessment of product spills and leaks from storage tanks and pipeline manifolds.
Asset Valuation
Crude and Product Distribution Terminals Valuation
Performed analyses for appraisals and valuation of a crude oil terminal and petroleum product terminals for due diligence and ad valorem taxation.
Royalty Determination
Processing Unbundling
Unbundled the processing costs incurred by an exploration and production company for its offshore natural gas production in the Gulf of Mexico. Evaluated the operating conditions of each function performed at the NGL extraction facility. Estimated capital costs and operating expenses for each function and determined the percentage of the costs that are deductible from federal royalty payments.