Sutherland Asbill & Brennan’s addition of more energy lawyers in Texas made news in several publications. The Houston Chronicle quoted Houston Partner in Charge Daniel Johnson, who described the firm’s new additions as part of an effort to represent clients facing the consequences of falling oil prices.
In an article headlined, “Sign of the times: Law firm adds energy bankruptcy partner in Houston,” the Chronicle also quoted Mr. Johnson as saying he expects to do more energy-related hiring.
The article pointed to Mark Sherrill, who moved from Sutherland’s Washington, D.C., office to Houston to focus on complex energy bankruptcy matters. The addition of John Zerwas Jr., the former policy adviser in the Texas governor’s Budget and Policy Division, to Sutherland’s Austin office also was noted, along with update that three other energy lawyers joined the firm in the state’s capital last year.
The Chronicle also reported that Daniel LeFort, a former in-house counsel for Shell and Exxon Mobil, had joined the Houston office as counsel.
Texas Lawbook also reported on Sutherland’s expansion in a story headlined, “Sutherland Expands Energy Capabilities in Texas” (subscription only). “Sutherland Asbill & Brennan is expanding its energy practice in response to turbulence in the oil and gas industry,” the online publication said.
Daniel Johnson, Partner in Charge of the Houston office of Sutherland Asbill & Brennan LLP, was selected among the Bayou City’s most influential energy leaders by the Houston Business Journal, which recently published its 2015 Who’s Who in Energy list.
This year’s rankings were among the most selective in recent years with only 38 local lawyers chosen among the leaders in various sectors of energy and the firms that service energy companies. The honorees were chosen by the publication’s journalists based on nominations.
Mr. Johnson has focused his practice on energy litigation since the beginning of his legal career more than a decade ago. He was deeply involved in the successful representation of an international drilling contractor in high-profile litigation after the 2010 Gulf of Mexico oil spill. Mr. Johnson also advises energy clients on regulatory investigations and compliance issues, contractual liability exposure and risk shifting provisions, and incident response and crisis management.
With colleagues in New York, London, Washington D.C., Austin, Atlanta, and Geneva, Sutherland’s Houston office continues to forge the firm’s strong reputation as a trusted legal adviser in the energy space. Daniel’s selection to the Houston Business Journal’s energy leaders list is continued confirmation of Sutherland’s reputation in the Houston energy market in the areas of crisis management, project development, maritime law and commercial litigation.
The regulatory landscape for midstream gas processing and storage could change significantly, Sutherland’s pipeline attorneys say, thanks to plans by the federal pipeline safety agency, PHMSA, to expand its oversight.
Recently, the Pipeline and Hazardous Materials Safety Administration (PHMSA) indicated it would require midstream natural gas processors and storage operators to abide by the same rules applied to pipelines that transport natural gas liquids. These midstream facilities traditionally have been regulated by OSHA, not PHMSA.
This expansion would obligate companies to reassess their operations and create new compliance programs, says Rachel Giesber Clingman, partner in the Houston office. It also may cause confusion over which specific regulatory rules or standards will be applied to midstream facilities.
The prospect of simultaneous regulation by PHMSA and OSHA is sure to increase operational uncertainty and compliance costs. In at least one case, PHMSA has fined one operator $800,000 and ordered extensive remedial action after finding its midstream process safety management program didn’t comply with the pipeline agency’s regulations.
The full analysis by Sutherland attorneys can be read here. In addition to Ms. Clingman, other Sutherland attorneys familiar with this issue are Jacob Dweck, Paul F. Forshay, Sean D. Jordan, Susan G. Lafferty, Jack Massey and Mark Thibodeaux.
Sutherland partner Steven L. Roberts was quoted recently in the Houston Business Journal in an article about the challenges for energy companies dealing with the legal system in Mexico.
The energy industry is anxiously waiting to see what types of reforms Mexico’s new president might support. Roberts notes that country’s legal system has some significant differences that must be navigated.
“It’s almost required to have a Mexican national agent,” Roberts told the HBJ. Also key is writing arbitration into the contract.
While some might think the U.S. system is a free-for-all at times, it’s a rule-driven methodical process compared to litigation in Mexico, says Roberts. “You want to be in the arbitration situation when at all possible.”
The legal system in Mexico isn’t based on common law practices as it is in the U.S. That can mean that a case that might be a simple commercial dispute in this country could wind up in criminal territory in Mexico, he says.
The full article, “Complex Mexican legal system can challenge foreign energy companies,” is here (subscription required):
http://www.bizjournals.com/houston/blog/drilling-down/2013/09/complex-mexican-legal-system-can.html
Daniel Johnson recently discussed with the Houston Business Journal the decision by Black Elk Energy Offshore Operations LLC to commission its own investigation into the cause of a deadly platform accident that killed three workers last year.
The report by an outside consultant said the explosion that occurred was due to poor training of workers who were hired by a contractor in violation of Black Elk’s contract. Such a report could be most effective with the investment community, Johnson says, because it suggests Black Elk is taking a deep look at the incident with the idea of preventing future disasters.
The company’s report doesn’t absolve the oil company from fault with federal regulators, Johnson told the HBJ, although they may take it into account as they do their own investigation.
The full article, “Black Elk explosion report could boost company profile,” is available here (subscription required): http://www.bizjournals.com/houston/blog/drilling-down/2013/08/black-elk-report-could-boost-company.html?s=print