Revised Opinion Memo


[PDF]Revised Opinion Memo - Rackcdn.comb1ca250e5ed661ccf2f1-da4c182123f5956a3d22aa43eb816232.r10.cf1.rackcdn.com...

18 downloads 149 Views 612KB Size

AAA 70 158 Y 00165 09  Revised Preliminary Opinion Memo of Kenji Hoshino  July 5, 2010 

 

Revised Opinion Memo   

From:   To:    Date:    Re:       

   

Kenji Hoshino, Principal, Project Controls & Forensics, LLC  Adam Schiffer, Esq., Schiffer Odem Hicks & Johnson  July 5, 2010  AAA 70 158 Y 00165 09  Rebuttal to Opposing Expert Report of Findings Dated 2/19/10 and,  Opposing Expert Supplemental Report and Response dated 5/21/10 

 

1. Introduction   

a. Qualifications (See CV Attached as Exhibit A)  i. Education  1. B.A. Architecture – U.C. Berkeley  2. M.S. Construction Engineering & Management – U.C. Berkeley  3. J.D. Law – U.C. Berkeley  ii. Professional experience:   1. 30 years in project controls and forensic schedule analysis  2. 28 years in private practice  3. First expert testimony in 1982  iii. Professional Certifications   1. Planning & Scheduling Professional (PSP)   2. Certified Forensic Claim Consultant (CFCC)  iv. Publication – Recommended Practice for Forensic Schedule Analysis (29R‐03  AACEi, June 2007 & July 2009)  v. Selected recent, similar project experience:  1. In Re Superior Offshore International, Inc. Securities Litigation (2010)  a. United States District Court Southern District of Texas, Civil  Action No. 08‐CV‐00687  b. Evaluation, on behalf of “Plaintiff”‐shareholders, of the  practices of “Defendant”, Superior Offshore Inc’s diving support  vessel operations and maintenance practices in the Gulf of  Mexico in relation to a class‐action suit by the shareholders of  the company against its former officers and directors.  c. Case is open and analysis is unsubmitted and in progress.  2. Conar Construcciones vs. Conoco‐Phillips Venezuela (2009)  a. Centro Empresarial de Conciliacion y Arbitracion ‐ Case 030‐08  b. Defensive analysis on behalf of respondent‐Owner, a claim by  the offshore installation contractor of claims of excusable and 

DRAFT 

1   

PRELIMINARY 

AAA 70 158 Y 00165 09  Revised Preliminary Opinion Memo of Kenji Hoshino  July 5, 2010 

  compensable delay during fit‐up and mobilization of an  installation vessel for the hook‐up of an FSO in Venezuelan  waters.  c. Case has been presented in ICC arbitration and analysis is  complete and testified.  3. Combisa vs. Pemex Exploracion y Produccion (2006)  a.  International Chamber of Commerce CASE # 13683  b.  Analysis on behalf of claimant‐contractor, prolongation of  offshore construction of a production platform and associated  costs, including the extended offshore rental of an  accommodation vessel, against the respondent‐owner, Pemex.  c. Case has been presented in ICC arbitration and analysis is  complete and testified.    b. Scope of Opinion: Evaluation of the technical merits of Opposing Expert’s Report of  Findings, dated 2/19/10 and Supplemental Report and Response dated 5/21/10 in  support of “PLAINTIFF’s” Change Order Request #03 Rev 1.      c. Foundation  i. Primary Sources  1. Opposing Expert Report dated February 19, 2010  2. Opposing Expert supplemental Report & Response dated May 21, 2010  3. Change Order Request  #03 and #03r  4. Daily Progress Reports 12/1/08 – 3/8/09  5. Project correspondence  6. Contract  7. Commitment schedules (see table below)   

DRAFT 

MPP File (VesselSched)

Printed

Bates

082908a

29‐Aug‐08

AMC 029659

092608a

26‐Sep‐08

AMC 006678

rev 081027

29‐Oct‐08

AMC006687‐91

103108a

31‐Oct‐08

AMC003721

110708a

07‐Nov‐08

AMC003737

111408a

14‐Nov‐08

AMC 006680

112108a

21‐Nov‐08

AMC003729

120508a

05‐Dec‐08

AMC003725

121208a

12‐Dec‐08

AMC 028741

121908a

19‐Dec‐08

AMC003731

122908a

30‐Dec‐08

AMC 028742

010509a

05‐Jan‐09

AMC 028738

011609a

16‐Jan‐09

AMC 028739

032009a

20‐Mar‐09

AMC 028740

040309a

03‐Apr‐09

AMC 028737

2   

 

PRELIMINARY 

AAA 70 158 Y 00165 09  Revised Preliminary Opinion Memo of Kenji Hoshino  July 5, 2010 

    ii. Background sources  1. Other Change Order Requests  2. Boa Sub C Ship’s Midnight Reports  3. ‘T‐Hawk Switch’ schedule of April 1, 2009 (“PLAINTIFF” 003741‐42)  4. “PLAINTIFF” Monthly Reports  5. Enbridge Project Documents  6. Deposition transcripts of:  a. Clay Thompson  b. Tony Quinn  c. Chris Adams  d. Sturla Magnus  e. Helge Roraas  f. Stephen Reid  g. Michael Doecke  h. John Lott  7. Interview with Bruce Malcolm    iii. Missing information that should have been supplied by “PLAINTIFF”  1. Tracking spreadsheets by Amanda Guo and here successors  2. Timecards of individuals whose charges appear in the claim     

 

DRAFT 

 

3   

PRELIMINARY 

AAA 70 158 Y 00165 09  Revised Preliminary Opinion Memo of Kenji Hoshino  July 5, 2010 

 

2. Claim for BOA Sub‐C Under‐Utilization (Ref. Opposing Expert Original pages  22‐27)   

a. Causation   i. Opposing Expert’s Allegation  1. The change to the Start Date and the abandonment of the process  hindered “PLAINTIFF”’s operations.    ii. PCF Responses  1. For purposes of this analysis I assumed that change in Start Date and  the abandonment of the process did cause “PLAINTIFF”’s vessel  scheduling to become disrupted.  2. Our scope of analysis concentrated on answering the question, “Given  this assumption, to what extent was “PLAINTIFF” damaged as a direct  and exclusive result.   

b. Impacts  i. Opposing Expert’s Allegations  1.  The resulting change and uncertainty caused by “DEFENDANT” required  “PLAINTIFF” to commit personnel and reschedule equipment activities  during this time period.  2. The resulting change and uncertainty caused by “DEFENDANT” affected  the Thunder Hawk project schedule  3. The resulting change and uncertainty caused by “DEFENDANT”  impacted “PLAINTIFF”’s Gulf of Mexico operation  4. Changing the schedule of a vessel like BSC typically causes a standby  situation in the near term program and  5. Changing the schedule of a vessel like BSC typically causes conflicts with  other projects and clients later in the overall vessel program schedule.  6. Changing the schedule also hindered BSC’s timely return to the North  Sea and the installation program there    ii. PCF’s Responses  1. There is no evidence submitted or any analysis by Opposing Expert  quantifying the commitment or personnel and the rescheduling of  equipment as a direct result of the ‘change and uncertainty’.  2. It is conceded that the change affected the ‘Thunder Hawk project  schedule’.  However the question is did that cause “PLAINTIFF” to incur  additional uncompensated costs?  3. The fact that these changes typically cause impacts is not enough  evidence to entitle “PLAINTIFF” to recovery of damages.  Since 

DRAFT 

4   

PRELIMINARY 

AAA 70 158 Y 00165 09  Revised Preliminary Opinion Memo of Kenji Hoshino  July 5, 2010 

4.

5.

6.

7.

  “PLAINTIFF” has access to adequate data they must perform a specific  impact analysis.  “PLAINTIFF”’s early commitment schedule (Exhibit B) shows that as of  August 29, 2008, “PLAINTIFF” had 122 days of ‘slack time’ or  uncommitted days during the period from October 31, 2008 through  March 31, 2009 which encompassed the performance of Thuderhawk  Phase 2 from November 23, 2008 through December 23, 2008.    a. Opposing Expert’s protest that the commitment schedules are  not contractual is true, but misses the point of their relevance.  b. I am using the commitment schedules, not to show what  “PLAINTIFF” was obligated to perform, but to show they  expectations and state of mind regarding the utilization of BSC.  c. Because the claim is for the alleged damages caused by the  issues in dispute, one must examine some evidence on what the  expectations were prior to the causal events.  The commitment  schedules are the evidence one must examine for this purpose.   An as‐built schedule (Exhibit C) that I prepared from the BSC Daily  Progress Reports supplemented by deposition testimony of Stephen  Reid shown that the actual count of ‘slack days’ was 33 days.  a. Thus it is apparent that the overall Gulf operation, as to BSC,  was not adversely impacted.   There is no evidence presented that the changes caused a conflict with  other projects and clients later in the overall vessel program schedule.   My examination of the commitment schedules show that there were no  impacts to downstream commitments.  (Exhibits D.1 & D.)  a. The commitment schedules supplied by “PLAINTIFF” show that  the Gjoa project in the North Sea was the only trailing  commitment for BSC after Thunder Hawk  The fact that BSC’s work on Thunder Hawk overran their targeted  departure to the North Sea on April 1, is attributed to:  a. “PLAINTIFF”’s unilateral delay in booking the tug for the sail  away from February 28, 2009 to March 5, 2009, and  b. “PLAINTIFF”’s own performance that led to the extended  duration of BSC’s work from a planned duration of 31 calendar  days to an actual duration of 42 calendar days through April 19.    

c. Mitigation of Damages  i. Opposing Expert’s Allegations   1. The official notice on 11/7/08 was approximately one month from the  “PLAINTIFF” nominated Start Date.   

DRAFT 

5   

PRELIMINARY 

AAA 70 158 Y 00165 09  Revised Preliminary Opinion Memo of Kenji Hoshino  July 5, 2010 

  a. This afforded little time for “PLAINTIFF” to find alternative near  term work for the BSC and resulted in stand‐by of the vessel  during several periods of time while “DEFENDANT” tried to fix a  new Start Date.  2. In a worst case, this change was a 96‐day shift in the scheduled Start  Date (December 2, 2008 – March 8, 2009).  Had the offshore vessels  been standing by for the 96‐day period at the Annex 2 all‐inclusive rate  of $348,721 per day, the cost would be $33,477,216.    3. However, “PLAINTIFF” was able to reschedule some projects such as the  Enbridge Project and mitigated over half of the potential exposure to  BSC standby costs by keeping the BSC over 50% utilized.      ii. PCF Responses   1. The mitigation effort was unlikely solely attributable to “PLAINTIFF”’s  conscious efforts specifically caused by the alleged “DEFENDANT”‐ delays but more likely primarily an on‐going effort to maximize the  utilization of an expensive asset in the ordinary course of business.  2. As stated above, a comparison of “PLAINTIFF”’s expectations to actual  performance indicates that “PLAINTIFF” was not adversely impacted.   The August 29, 2008 commitment schedule shows 122 days of slack  time during the performance window shown in the schedule.  As‐built,  the slack has been reduced to only 33 days for the analogous period.  3. Helge Roraas testified (deposition transcript pages 36, line 23) that 80%  utilization rate was a reasonable expectation.    4. The as‐built utilization factor was 85% (based on 213 minus 33 = 180  divided by 213), thus exceeding the reasonable expectation of  “PLAINTIFF” for vessel utilization.    As-Built

As-Planned (8/29/08)

Free Slack Start

End

Duration

Start

End

Duration

1

22-Dec-08

06-Jan-09

16 cd

n/a

n/a

0 cd

2

23-Jan-09

27-Jan-09

5 cd

30-Oct-08

22-Nov-08

24 cd

3

22-Feb-09

05-Mar-09

12 cd

24-Dec-08

31-Mar-09

98 cd

Total Period

33 cd 19-Sep-08

19-Apr-09

122 cd

213 cd

85%

U.F.

 

     Table 1   

d. Damages  i. Opposing Expert’s Allegations  DRAFT 

6   

PRELIMINARY 

AAA 70 158 Y 00165 09  Revised Preliminary Opinion Memo of Kenji Hoshino  July 5, 2010 

1.

2.

3.

4.

5.

6. 7.

  Analysis of the total days of extension attributed to “DEFENDANT”’s  changes after “PLAINTIFF” mitigation is 37.7 days based on Opposing  Expert’s old report dated 2/19/10 and 35.86 days based on their  supplemental report dated 5/21/10, per examination of BSC’s Daily  Project Report.  The Contract Rate for standby is $306,700 per day based on the Annex 2  Rates based on Opposing Expert’s old report.  Synergy has now revised  this by the 5/21/10 supplement to $348,721  In the old report Opposing Expert claims that:  a. “PLAINTIFF” was able to mitigate or avoid all charges for the  mooring transport vessel and thus it is deducted from the rate.  b. Additionally, there is also a credit for fuel consumption based  upon actual fuel usage.  However, in the 5/21/10 supplement, Opposing Expert maintains that  the proper rate is the $348,721 amount that includes a “full spread”  including offshore fuel consumption.  The claimed cost in the old report is for 37.717 days of standby times  $306,700, or $11,567,829 based on Opposing Expert’s interpretation of  the rates set forth in Annex 2.  The 5/21/10 supplement now calculates the claimed coast at 35.86 days  of standby times $348,721 or $12,505,135.  In addition, Opposing Expert, on behalf of “PLAINTIFF”, now claims the  differential in rental rates between those charged to its three customers  during the alleged ‘stand‐by window’ and the $348,721 fully‐loaded  rate.  a. This results in an additional claim of $5,175,106. 

  ii. PCF’s Responses  1. My Stand‐by analysis prepared from BSC’s Daily Progress Reports  supplemented by other sources (Exhibit E) show that claimed Stand‐By  Block #1, 12/22/08 thru 1/7/09 consisting of 15.24 claimed standby  days, corresponds approximately with Free Slack Period #1 from  12/22/08 thru 1/6/09.    a. Besides this period being too short to accommodate the  performance of Thunder Hawk, estimated to take about 30 days  by “PLAINTIFF” at that time, it is a hiatus between BOA SubC's  performance of jumper installation for Enbridge.   Thus the start  and the end of the slack period are hemmed in by commitments  to Enbridge.  b. Stephen Reid, project manager for “PLAINTIFF” on the Enbridge  project, testified (deposition transcript starting on page 20) that 

DRAFT 

7   

PRELIMINARY 

AAA 70 158 Y 00165 09  Revised Preliminary Opinion Memo of Kenji Hoshino  July 5, 2010 

c.

d.

e.

f.

g.

  the Enbridge project encountered problems during this period  that necessitated BSC to demobilize temporarily from the  offshore field until a solution for the problem was found.   Opposing Expert’s representation that BSC could have gone  back to finish the work at Enbridge whenever it wanted to is  contradicted by the testimony of Stephen Reid (deposition  transcript pages 23, 33 & 34).  Stephen Reid testified (deposition transcript page 33 & 34) that  new equipment that would remedy the problem at the Enbridge  project was loaded onto BSC at this time on‐shore. This leads  one to believe that the in‐port time was necessary for the  completion of work for Enbridge.  i. Also, during this time, the Daily Progress Reports  represent that the crane wires went through  maintenance.  Stephen Reid testified (deposition transcript pages 23 through  26) that he was not aware why Enbridge was not charged for  this work hiatus that was apparently caused by problems out of  “PLAINTIFF”’s responsibility or control.  i. It appears that “PLAINTIFF” voluntarily released  Enbridge from responsibility for the stand‐by period.  Given the above, I am not aware of ANY legitimate argument  why “DEFENDANT” would be responsible to pay “PLAINTIFF” for  ‘stand‐by’ during this period.  When this period is removed from consideration as a ‘free slack’  for purposes of calculating the utilization factor for BSC, the  calculation, as shown below, results in 92% utilization. 

  As-Built

As-Planned (8/29/08)

Free Slack Start

End

Duration

Start

End

Duration

1

n/a

n/a

0 cd

n/a

n/a

0 cd

2

23-Jan-09

27-Jan-09

5 cd

30-Oct-08

22-Nov-08

24 cd

3

22-Feb-09

05-Mar-09

12 cd

24-Dec-08

31-Mar-09

98 cd

Total Period

17 cd 19-Sep-08

19-Apr-09

122 cd

213 cd

92%

U.F.

 

     Table 2   

DRAFT 

8   

PRELIMINARY 

AAA 70 158 Y 00165 09  Revised Preliminary Opinion Memo of Kenji Hoshino  July 5, 2010 

  2. Examination of Daily Progress Reports provided by “PLAINTIFF” (see  attached Exhibit B) show that Claimed Stand‐By Block #2, 1/18/09 thru  1/28/09 consisting of 9.11 claimed standby days, corresponds  approximately with Free Slack Period #2 from 1/23/09 thru 1/27/09.    a. This period is also too short to accommodate the performance  of Thunder Hawk.    b. Stephen Reid testified (deposition transcript pages 35 and 39)  that “PLAINTIFF” was compensated for the period through  January 22nd by CO #4 issued on the Enbridge project   i. The DPRs of the first five days and the last day of this  claim block are clearly annotated with performance of  demobilization from other projects.  c. Arguably, January 23rd thru 27th, a 5‐day period may be claimed  as a stand‐by period for which no apparent work was done for  other projects.    d. However, in order to be entitled to payment for this period,  “PLAINTIFF” would still have to show actual expenditure of  additional uncompensated cost directly and solely attributable  to “DEFENDANT”. In view of the fact that “PLAINTIFF” was not  damaged in the overall entitlement for compensation for this  period is, at best, very difficult.  3. Examination of Daily Progress Reports provided by “PLAINTIFF” (see  attached Exhibit B) show that claimed Stand‐By Block #3, 2/21/09 thru  3/7/09 consisting of 11.51 claimed standby days1, corresponds  approximately with Free Slack Period #3 from 2/22/09 thru 3/5/09.    a. Most of the DPRs during this block are clearly annotated with  performance of mobilization work for Thunder Hawk for which  “PLAINTIFF” has already received contractual compensation.  b. “PLAINTIFF”’s Commitment Schedule issued on March 20, 2009  shows in the as‐built portion of the chart that on March 6, 7 and  8 “PLAINTIFF” was installing aquatic reels necessary of the  Thunderhawk campaign onto BSC.  This would indicate that they  were not ready to go offshore until after March 8, which would  negate their entitlement to compensation based on the  doctrine of concurrent delay.   c. Arguably, February 22nd through 25th, a 4‐day period may be  claimed as a stand‐by period for which no apparent work was  done for other projects.  Had “PLAINTIFF” installed the reels                                                              

1

 Based on Opposing Expert’s Supplemental report it is unclear which hours of which days during this period  constitute11.51 days.  Exhibit B shows what my assumptions are for Opposing Expert’s quantification.   

DRAFT 

9   

PRELIMINARY 

AAA 70 158 Y 00165 09  Revised Preliminary Opinion Memo of Kenji Hoshino  July 5, 2010 

  prior to February 22nd they may have received some  consideration for compensation for stand‐by payments during  this 4‐day period.  d. Extrapolating from the actual time charged against  Thunderhawk mobilization on their DPRs (8 days) “PLAINTIFF”  should have started mobilization at the latest on February 21st if  February 28th was the designated sail‐away date.  e. In any case, in order to be entitled to payment for any period,  “PLAINTIFF” would still have to show actual expenditure of  additional uncompensated cost directly and solely attributable  to “DEFENDANT”.  In view of the fact that “PLAINTIFF” was not  damaged in the overall entitlement for compensation for this  period is, at best, very difficult.  4. Opposing Expert’s assertion that “PLAINTIFF” is entitled to be paid a  differential in rates during the time it was on hire for other clients is  patently ridiculous and does not merit serious rebuttal.  a. Apparently Opposing Expert, on behalf of “PLAINTIFF”, has  abandoned one nonsensical claim (Operational Flexibility) and  added in its place a new claim equaling the former in lack of  sound reasoning.   5. The stand‐by rate claimed, of $348,721 per day, is not consistent with  the nature of dockside standby.  a. The claimed daily rates are labeled “Stand‐by Rates – Mooring  Line Installation” or “Stand‐by Rates – FPU Installation”.   Neither one of these operations was on‐going during the  claimed stand‐by periods and therefore did not involve the  stand‐by of the auxiliary equipment constituting ‘the spread’.   BSC was allegedly on stand‐by at dock.  b. Even if they were off shore, the rates cannot be contractually  applied until AFTER mobilization, which did not occur until early  March.  c. The most appropriate rate in the table is the one labeled,  “Stand‐By Rates – Primary Vessel” at $146,667 per 24‐hour day.  i. Opposing Expert claims that this is not a valid rate since  it is labeled in the table as “For Reference Only”.  But,  then the question is for what referential purpose does  the contract list the rate among the other stand‐by  rates?  I opine that the rate is a reference for use in  situations where the other rates do not apply.  ii. This claim is precisely such situation. 

DRAFT 

10   

PRELIMINARY 

AAA 70 158 Y 00165 09  Revised Preliminary Opinion Memo of Kenji Hoshino  July 5, 2010 

  d. Even at this rate of $147,667, “PLAINTIFF” will be recovering  significant additional monies over its cost between $70,000 and  $80,000 per day rental that it pays to the owners of BSC (Roraas  deposition transcript page.   6. When the $146,667 rate is applied to the 5 days of arguable stand‐by  days, the total is $733,335.  7. Should “DEFENDANT” be successful in its claim for liquidated damages  for delayed mobilization, the claimed amount of $500,000 should be  deducted from the stand‐by total.  a. The net total claim would be $233,335 as shown below:   

Hoshino's Opinion of 'Best Case' for AMC 5.0 cd 146,667 733,335

BSC Stand-By

2/28/09-3/8/09 less 4 5 cd SBMA LD Claim Offset

100,000 500,000

Net Claim Value

233,335

 

Table 3   

8. If the same calculation is performed using the average approximate cost  of the vessel to “PLAINTIFF” ($75,000 per day) the net total claim would  be negative $125,000, as shown below:    Using Approximated Rental Cost 5.0 cd 75,000 375,000

BSC Stand-By

2/28/09-3/8/09 less 4 5 cd SBMA LD Claim Offset

100,000 500,000

Net Claim Value

-125,000

 

Table 4 

 

 

DRAFT 

  11   

PRELIMINARY 

AAA 70 158 Y 00165 09  Revised Preliminary Opinion Memo of Kenji Hoshino  July 5, 2010 

 

3. Claim for Loss of Operational Flexibility (Ref. Opposing Expert page 27‐29)   

 

DRAFT 

a. Abandoned Claim  i. Opposing Expert’s Allegation  1. In its old report, Opposing Expert stated that “With the contractual  ability to make the last three call downs for the Start Date Window,  “PLAINTIFF” is provided the scheduling flexibility to perform work for  other clients and keep the BOA Sub C utilized until just prior to the  Thunder Hawk Start Date.”  2. In its 5/21/10 supplement Opposing Expert withdrew this claim.    ii. PCF Responses  1. Since the claim was withdrawn, a response is moot.  However, my  responses to this claim from my initial report are still valid, should  “PLAINTIFF” decide to resurrect this claim.   2. As I stated in my initial report, this claim appears to be an attempt to  cover up their potential exposure to “DEFENDANT”’s counterclaim for  “PLAINTIFF”‐caused delayed mobilization as is often the case with a  contractor’s nonsensical claims used as a diversionary tactic or a ‘throw‐ away’ offset against a more legitimate claim by the owner.  a. The claimed time window for this claim includes the period  2/28/09 to 3/8/09 which is the same period claimed by  “DEFENDANT” in its liquidated damages counterclaim  3. As I said earlier, apparently Opposing Expert, on behalf of “PLAINTIFF”,  has abandoned this nonsensical claim and added in its place a new claim  (Rate Differential Claim) equaling the former in lack of sound reasoning.      

12   

PRELIMINARY 

AAA 70 158 Y 00165 09  Revised Preliminary Opinion Memo of Kenji Hoshino  July 5, 2010 

   

4. Claim for Added Project Mgmt & Engineering (Ref. Opposing Expert pages 19‐ 22)    a. Causation  i.  Opposing Expert’s Allegation  1. “In addition to the 75‐day extension to the Project Team, “PLAINTIFF”  expended additional time in November and December trying to resolve  issues arising out of the change in Start Date.  “DEFENDANT” did not  hand‐over the FPU on February 28, 2009, but rather handed over the  FPU on March 8, 2009, thus adding additional days to the actual  schedule extension.”      ii. PCF’s Response  1. This is a compensable delay claim that requires a showing of ‘but‐for’ in  the form of absence of concurrent delay or cause that would prolong  the involvement of these people.    b. Impact  i. Opposing Expert’s Allegation  1. 75‐day of extended “extra work” to the Project Team.  2. “PLAINTIFF” expended additional time in November and December  trying to resolve issues arising out of the change in the Start Date.    ii. PCF’s Response  1. There is no basis to Opposing Expert’s bald assertions that this Project  Team was idly waiting for 75 days.  2. Although they allegedly performed re‐scheduling tasks, Opposing Expert  doesn’t account for the fact that re‐scheduling was also necessary due  to delays and sequence shifts by projects other than Thunder Hawk.    a. This task, even under circumstances not involving any alleged  delays by “DEFENDANT”, would be further complicated by the  fact that the rescheduling effort involves another vessel‐asset,  Boa Deep Sea, operating in the same Gulf of Mexico area.  3. If this is intended to recover the cost of the administrative and  engineering personnel purely as a function of extended project  duration, “PLAINTIFF” must show that these costs would have been  incurred but for the alleged “DEFENDANT” delays.  Opposing Expert had  not done so.   

DRAFT 

13   

PRELIMINARY 

AAA 70 158 Y 00165 09  Revised Preliminary Opinion Memo of Kenji Hoshino  July 5, 2010 

  c. Mitigation of Damages  i. Opposing Expert’s Allegations  1. “It was not feasible for “PLAINTIFF” to temporarily reassign its  personnel for a short period of time to another project than re‐mobilize  them when the Start Date was finally determined by “DEFENDANT”.   Therefore it is reasonable for “PLAINTIFF” to request payment in a  Change Order Request for the cost of the Project Team due to the  change by “DEFENDANT” of the Start Date and the resulting schedule  extension.”    ii. PCF’s Responses  1. Opposing Expert’s allegation that the staff could not be reassigned is  inconsistent with their argument in the flexibility claim that a small  window of time (14‐days) still gives “PLAINTIFF” the flexibility to  gainfully reassign the vessel for other projects.  2. Opposing Expert now alleges that it could not mitigate because the  Contract between “DEFENDANT” and “PLAINTIFF” prohibited the re‐ assignment of personnel to other projects.  a. Assuming that to be the case, given competent notice and a  request for temporary re‐assignment, I cannot think of a good  reason why “DEFENDANT” would refuse to waive the alleged  contractual restriction, given that it is a prudent mitigation  measure.  b. No such notice or request is on record.  3. Stating a slightly different argument, in answer to a deposition question,  “You say you had to carry them.  Weren't they also used on other  projects in the Gulf of Mexico during the delay period?”, Chris Adams  testified, “No.  They could not be committed to other projects.  They  were the core team.  The key personnel for the core team and if I would  have committed them, we would, in essence, jeopardized our  readiness.”  a. Note that he did not testify that the Project Team was  completely idled, awaiting mobilization of Phase 2.  b. Note also that he did not testify to temporary re‐assignment.   He only testified to “commitment to other projects”.  c. Nor did he talk about re‐assignment to project outside of the  Gulf of Mexico.  d. Even if he had testified to the above, this would make sense  only if the period of delayed mobilization completely unknown.   But that is not the case.  It is my opinion that “PLAINTIFF” 

DRAFT 

14   

PRELIMINARY 

AAA 70 158 Y 00165 09  Revised Preliminary Opinion Memo of Kenji Hoshino  July 5, 2010 

  received adequate notice from “DEFENDANT” to temporarily re‐ assign its staff.    d. Damages  i. Opposing Expert’s Allegation  1. “An analysis of the labor hours and cost for the “PLAINTIFF” Project  personnel from November 2008 (when “DEFENDANT” notified  “PLAINTIFF” of the change to the Start Date) through February 2009 is  provided in the following table.  This breakdown indicates the  percentage of time spent on lump sum work and the percentage of time  spent on Change Order work during the extended Project schedule.   “PLAINTIFF”’s hours and cost attributable to lump sum work are  excluded from the quantified cost.”    ii. PCF’s Responses  1. Because “PLAINTIFF” has not produced the timecards of charges made  by the claimed individuals, a detailed evaluation of the legitimacy of the  charges cannot be performed.  Questions that remain unanswered  include:  a. Were they charged to the Thunder Hawk project?  b. Were they charged to COR 03, some other CO or any CO?  c. Doesn’t the mark‐up on the COR cover these claimed  administrative expenses?  d. What was specifically performed for those charges?  e. Where were these people located?  f. Were these actual expended or accrued costs?  2. Given the fact that the above argument was made in my previous  report, it is extremely telling that “PLAINTIFF” still refuses to release the  timecards of the individuals being charged in this claim.  3. The claimed ‘expenditure’ does not fit the nature of dockside standby.  a. Dockside standby is not ‘extra work’ or ‘engineering’, yet “Extra  Work” rates are used from Annex 3 

 

DRAFT 

 

15   

PRELIMINARY 

AAA 70 158 Y 00165 09  Revised Preliminary Opinion Memo of Kenji Hoshino  July 5, 2010 

 

 

5. Conclusions (Ref. Opposing Expert Supplemental Report Pages 5‐7)  (It is assumed that the conclusions in Opposing Expert’s Supplemental Report supersede those  contained in their Original Report.  If they do not, my rebuttals to their original conclusions should  be considered still valid.)    a. 1st Bullet: Countdown windows are commonly used  i. Response: Agreed, but the specific language providing for the countdown  window in this particular Contract allows the specification of only the start date  of installation within the window as opposed to the total duration of installation  within the window.    b. 2nd Bullet: Deviation typically results in a Change Order  i. Response: Agreed, but only upon showing of actual damage in the form or  additional cost paid or incurred    rd c. 3  Bullet: Contract allows for a Change Order  i. Response: Agreed, with same caveat as ‘b’ above    d. 4th Bullet: “DEFENDANT” failed to follow the countdown procedure  i. Response: Agreed    th e. 4  Bullet: “DEFENDANT” unilaterally extended Phase 2 delivery date  i. Response: Agreed    f. 4th Bullet: “DEFENDANT” extended the project duration   i. Response:  Disagree.    ii.  The actual project duration is the period during which BSC was working on  Phase 1 and Phase 2.  December 16, 2008 to February 28, 2009 is the alleged  period during which the start of Phase 2 was delayed.   iii. The causes of the extension of duration during the performance of Phases 1 and  2 are multiple and cannot be attributed solely to “DEFENDANT”.    g. 4th Bullet: “DEFENDANT” increased “PLAINTIFF”’s cost for personnel & equipment  i. Response: Disagree.    ii. Opposing Expert failed to show this and apparently is lacking in source  documentation from “PLAINTIFF” to make this determination.    th h. 4  Bullet: “DEFENDANT” limited “PLAINTIFF”’s ability to commit to other Projects prior  to April 20, 2009  

DRAFT 

16   

PRELIMINARY 

AAA 70 158 Y 00165 09  Revised Preliminary Opinion Memo of Kenji Hoshino  July 5, 2010 

i.

  i. Response: Agreed, but such limitation would have occurred even if the Contract  was completed without any delays.    ii. Opposing Expert failed to reasonably quantify the degree of limitation and  actual damages proximately caused by such limitation.      th 5  Bullet: From a construction management perspective, “PLAINTIFF” should be  compensated for “DEFENDANT”’s change in start date  i. Response: I am not aware of any construction management perspective that  allows for the receipt of ‘compensation’ without the recipient establishing clear  nexus between the allegedly un‐compensated cost and the payer’s action or  inaction. 

  j.

5th Bullet: From a construction management perspective, “PLAINTIFF” should be  compensated for “DEFENDANT”’s abandonment or procedure  i. Response: I am not aware of any construction management perspective that  allows for the receipt of ‘compensation’ without the recipient establishing clear  nexus between the allegedly un‐compensated cost and the payer’s action or  inaction. 

  k. 6th Bullet: It was reasonable for “PLAINTIFF” to request a CO for the cost due to the  change by “DEFENDANT”.  i. Response: Agreed, upon showing of actual cost incurred and direct causation    th l. 6  Bullet: It is customary industry practice to resolve contract deviations by mutually  agreed change order or contract amendment.  i. Response: Agreed.    th m. 6  Bullet: Where the deviation consists of the failure to meet a start date or the failure  to follow the countdown procedure, it is common for standby rates to apply.  i. Response: Agreed, but the rate must be appropriate for the circumstances.    th n. 7  Bullet: The applicable Annex 2 rate is $348,721.  i. Response: Disagree.  The appropriate rate is $146,667.    th o. 8  Bullet: “PLAINTIFF” mitigated the fully compensable standby charges that would  have otherwise been due from “DEFENDANT”.  i. Response: Disagree that such standby charged would have otherwise been due  but for the mitigation.   

DRAFT 

17   

PRELIMINARY 

AAA 70 158 Y 00165 09  Revised Preliminary Opinion Memo of Kenji Hoshino  July 5, 2010 

  p. 8  Bullet: Such mitigation consisted of committing BSC to other clients during the  alleged standby period.  i. Response: Agree as to the fact that such practices had the effect of preventing  BSC from being underutilized.    ii. However, such practice is not conducted for the sole purpose of mitigating  damages and would be practiced in the normal course of business.    th q. 8  Bullet: Value of the impact of the change in start date & deviation from procedure is  $18,416,783  i. Response: Disagree.    r. Overall Observation and Conclusion  i. If “PLAINTIFF” is allowed to recover using Opposing Expert’s arguments, they  would be in better shape than if the Contract did not experience any problems.  1. Any interpretation of a Contract that would allow a party to be enriched  by the failure of the conditions of the contract would encourage the  thwarting of conditions and would be against the very essence of  commercial enterprise.  ii. Opposing Expert’s position is that proof of actual damage is unnecessary and  irrelevant to recover, as evidenced by its effort to ignore the commitment  schedules and its apparent disregard for personnel timecards.  1. My understanding is that proof of actual damages is a basic,  fundamental requirement.  iii. SBM’s claim is an effort to recover monies for thwarted overoptimistic,  unreasonable and speculative expectations; it is not about redressing actual  harm; it is about satisfying simple greed.   th

    

 

DRAFT 

 

18   

PRELIMINARY 

AAA 70 0 158 Y 00165 09  Revised d Preliminary O Opinion Memo o of Kenji Hosh hino  Ju uly 5, 2010 

 

6. Limiting Co onditions    •

  •

  •

Representation of facts con ntained in thiss report on w which the anallysis and concclusions are b based  arre assumed to o be correct b based on our knowledge aand belief thaat they were o obtained from m  so ources consid dered reliablee and correct.  However, no liability or w warranty for tthe accuracy of  th he informatio on is assumed d by or imposeed on us for tthe information, and it is ssubject to  co orrection and d/or withdraw wal if addition nal or refined information is obtained.  his report waas prepared so olely for the p purpose, funcction and partty so identifieed in this repo ort.   Th Th his report maay not be reprroduced, in w whole or in paart, and the findings of thee report may n not  bee utilized by aany person orr entity not party to the diispute for anyy purpose, without prior  exxpress written consent of Kenji P. Hosh hino.  No chan nge of any iteem in any of this report shaall be  ne other than m made by anyo n Kenji P. Hosshino or his duly authorized agent.  Anyy such changee will  seerve to autom matically void the entire reeport.  Exxcept for thosse produced by the parties during the p project, any d digital files that may be  produced in co onjunction wiith this matteer, and any haardcopy printouts generated from the  digital files or aattached hereeto are the so ole and exclusive propertiees of Kenji P. Hoshino, Pro oject  Controls and FForensics, LLC C (PCF), CMR o of Nevada, an nd its parent licensor, Agin ncourt  Teechnologies, Ltd.  They aree protected b by United Stattes copyright laws and inteernational treeaty  provisions.  Th hey are provid ded solely for the convenieence of the reecipient for th he sole and  exxpress purpose of examinaation of the ccontents.  You u agree not to o disassemblee, decompile,,  reeverse engine eer, or create derivative diigital files.  W When produceed, each digitaal file shall bee  trreated like an ny other copyrighted mateerial except th hat you may (a) make one copy of the fiiles  so olely for backkup or archivaal purposes, aand (b) transfeer the digital files to a singgle hard disk  provided you kkeep the original solely forr backup or archival purpo oses.  You mayy copy the  haardcopy mate erials accomp panying the digital files only for the purrpose of admiitting them ass  arrbitration exh hibits, provideed they are not altered.  

  End of Report  

  Kenji P. H Hoshino, PSP, CFCC  Princcipal Memberr  Project Conttrols & Forensics, LLC 

19  DRAFT 

PRELIMIN NARY 

KENJI P. HOSHINO PSP, CFCC PROFESSIONAL PROJECT CONTROLS & FORENSICS, LLC f.k.a. CMR / CONSTRUCTION MANAGEMENT RESOURCES PRINCIPAL CONSULTANT – MAJORITY MEMBER, Since 1982 Construction Management, Scheduling, Claims Consulting & Expert Witness

CMR PUBLISHING, INC. GENERAL MANAGER – OWNER, 1992 - 1997 Scheduling Software Development, Publishing & Marketing

GRANITE CONSTRUCTION COMPANY, Watsonville, CA PIPELINE & PLANT DIVISION PROJECT ENGINEER, COST & SCHEDULING, 1980 - 1982 Project Cost & Scheduling Controls / Claims Preparation

EDUCATION U.C. BERKELEY, COLLEGE OF ENGINEERING MASTERS IN SCIENCE (MS) - June 1980 Construction Engineering & Management

U.C. BERKELEY, BOALT HALL SCHOOL OF LAW JURIS DOCTOR (JD) - May 1980 Law

U.C BERKELEY, COLLEGE OF ENVIRONMENTAL DESIGN BACHELOR IN ARTS (BA) – With Highest Honors - March 1977 Architecture

CERTIFICATIONS & OTHER QUALIFICATIONS ASSOCIATION FOR ADVANCEMENT OF COST ENGINEERING, INTERNATIONAL CERTIFIED PLANNING & SCHEDULING PROFESSIONAL (PSP) June 2004 / Renewed & Current

ASSOCIATION FOR ADVANCEMENT OF COST ENGINEERING, INTERNATIONAL PROJECT MANAGER, RECOMMENDED PRACTICE FOR FORENSIC SCHEDULE ANALYSIS June 2003 – Present

ASSOCIATION FOR ADVANCEMENT OF COST ENGINEERING, INTERNATIONAL CERTIFIED FORENSIC CLAIMS CONSULTANT (CFCC) July 2007 / Current

Page 1 of 6

Major Claims Prosecution Assignments Include . . . Trial Testimony Alameda County Hospital Cogeneration Facility – Heathorn Mechanical (Alameda) API-Tosco Hydrogen Plant – Kingston Constructors, Inc. (Contra Costa) Chevron Penhex Project - Kingston Constructors, Inc. (Contra Costa) Rancho Cotate Junior High School - TriCounty Electric (Sonoma) Lockheed Sunnyvale Plant Site Utilities - J Amaral & Sons (Santa Clara)

Arbitration Testimony Diegan Hotel – Highland Partners Co. (AAA) Pemex Cantarrell EPC-22 – KBR, Inc. (ICC) Highway 198 @ Visalia – R.L. Brossamer (OAH) Downtown Ferry Terminal – Miller Thompson (AAA) Newport Beach Public Library - Koll Construction (Private Arb) G.M. Wentzville Assembly Plant - T. L. Cholette (AAA) Buchanan Fields Driving Range - Krump Construction Co. (AAA) Coronado Point Condominiums - Nielsen Construction Co. (Judge Pro Tem) Colfax Elementary School - RJT Construction, Inc. (AAA) Oak Court Office Building - Taylor-Woodrow of America (JAMS) LARTD 7th & Flower Station - Granite Construction Co. (LARTD DRB) Cal State Prison at Corcoran - Swinerton & Walberg (OAH) Golden Gate Bridge Deck Rehabilitation - Dillingham-Tokola Joint Venture (JAMS) Brock Residence Inn - SBD Construction (AAA) North Shore Sewage Pumping Station - Granite Construction Co. (AAA)

Mediation Presentation Encina WWTP Admin & Maintenance Bldg – Jaynes, Inc. (Gibbs) Aloha Self Storage – MST Corporation (Wulff) McCarran Central Car Rental Facility – PCL Corporation (Piazza) Mendocino College, Ukiah – Fidelity Guaranty Ins Co (Gibbs) War Memorial Library – Arntz Construction (Timpane) Benicia-Martinez Bridge Toll Gate Complex – West Bay Builders (Wulff) Puget Sound Transit Contract 700 & 810 – Kiewit Pacific Construction (Piazza) Sanderson Pumping Station – Fidelity & Deposit of Maryland (Brown) Las Vegas Airport Terminal D Expansion – Sletten Construction (Piazza) Contra Costa County Juvenile Hall – Arntz Construction (Wulff) San Diego Children’s Hospital Cogeneration Facility – AO Reed (Gibbs) SFO Extension Traction Power @ Daly City – Kingston Constructors (Wulff) Port of Oakland Intermodal Service Facility – Desilva Gates / Gallagher Burke (Wulff) Fresno Airport Concourse Expansion – R. J. Lanthier (Shane) Clarke Performing Arts Center – Soltek Pacific (Brown) White Hill Slide Repair & Bridge – West Bay Builders (Gibbs) March Avenue Grade Separation – R. M. Harris (Wulff) Los Altos Marriott – S.D. Deacon (Gibbs) Evergreen Community College – Arntz Construction (Gibbs) Highway 1 @ Lompoc – Sully Miller Construction (Wulff) Seattle Public Library – Hoffman Construction (Piazza) DeSilva Island – Parrott Mechanical (Malpassuto) Richmond Parkway Castro Street Improvements – DeSilva Gates (Wulff) Fremont Police Facility – Koll Construction (Griffith) CSU Long Beach Parking Structure – Ninteman Construction (Wulff) DWR Pear Blossom Pumping Station – Torno America, Inc. (Shane) Bureau of Reclamation Towaoc Reach Canal - Torno America, Inc. (Wulff) State Highway 58 Barstow - Torno America, Inc. (Shane) Oceanside Water Pollution Control Plant - Brayer-Abbett Joint Venture (Piazza)

Page 2 of 6

TOSCO/UPI Hydrogen Facility - Kingston Constructors, Inc. (S/C Contra Costa) SF MUNI J-Line Connection Project - Homer J. Olsen (S/C San Francisco) EBMUD Headquarters Building - East Bay Municipal Utility District (Piazza) EBMUD Plant Expansion Site Work - V. A. Blair, Inc. (Piazza)

Settled After Deposition Malibu Slide Stabilization – PKB / Drill Tech Drilling City Place Long Beach – Oltmans Construction San Diego Convention Center Expansion – California Drywall Associates Solutia AN7 Acrylonitrile Plant – Fluor, Inc. Linda-Cirby Confluence Flood Control – Rutherford & Smith Academic Surge Building – Allen Bender, Inc. Berry St. Mall Landfill Closure – The Mark Group SF MUNI Castro Double Crossover Contract - Kingston Constructors & Stacy Witbeck West County Sludge Detention Works - McGuire & Hester

Negotiation Presentation Sharp Memorial Hospital, San Diego – Gilbane Building Co. Alfred Merit Smith Water Treatment Facility – Sletten Construction of Nevada North Block Lofts – Taylor Frager Construction City of LaQuinta Golf Course – Weitz Construction NAS Fallon BEQ – Roman Construction Orleans Hotel & Casino – Dynalectric of Nevada Richmond Parkway Contract 8A & 8B – Benco Engineering Contractors Bremerton Hammerhead Crane Lead Abatement & Painting – Westar Engineering, Inc. US Courthouse Sacramento – Azteca Construction Miramar Centrifuge Facility – Nielsen Dillingham Builders CSU Long Beach Parking Garage - Ninteman Construction UCLA Anderson Graduate School of Management - Kirkwood-Dynalectric Co. Kaiser Oakland Medical Office Building - Smith Rausch Electric Co. Alice Arts Center - TLC-Fields Joint Venture Monterey Regional Sewage Treatment Facility - Mortenson-Natkin Joint Venture EBMUD Headquarters Building - Sumitomo Construction of America Hetch Hetchy Microwave & Fiber Optic Project - Amelco Electric Co. John Muir Hospital Expansion - Dillingham Construction, Inc. SF International Airport Terminals A, B & C - Rosendin Electric, Inc. Hyperion WWTP Energy Recovery & Carver Greenfield Facilities - Rosendin Electric, Inc. Port Hueneme Naval Medical Clinic - Harold J. Younger, Inc. Sandia National Lab Earthquake Retrofit - Harold J. Younger, Inc. Center High School - Paschal & Tanaka S.F. Cable Car System Rehab Contracts 829/831 - Underground Construction Co. K-Mart Vacaville Store - Teichert Construction Co. Wastewater Transport Culvert C3 – Underground Construction Co.

Analysis and/or Report Only Pemex Cadereyta Refinery, Mexico – SKE&C Cardinals Stadium, Phoenix – Kiewit Western U.S. Federal Building, San Francisco – Dick-Morganti JV Nanhai Petrochemical Plant Waste Water Treatment Facility – Montgomery Watson Las Vegas Strip Monorail – Bombardier-Granite NYPA Poletti Power Plant – Slattery Skanska Newington Power Project – Duke / Fluor-Daniel Travis AFB Squadron Operations Building – Kilgallon Construction Co. Las Vegas Club Expansion – Dynalectric of Nevada Sonoma Main Adult Detention Facility II – Peterson Mechanical Valencia Water Reclamation Plant Stage 4 - Rosendin Electric, Inc. Yerba Buena Theatre & Visual Arts Center - Rosendin Electric, Inc.

Page 3 of 6

Sonoma County Main Adult Detention Facility - Dillingham Construction, Inc. De Anza College Parking Garage - J. H. Pomeroy Kaiser Riverside Medical Center - Dillingham Construction, Inc. SMUD Energy Management Center - Rosendin Electric, Inc. Cerritos Reclaimed Water Irrigation Pipeline - Gates & Fox, Inc. EBMUD Stone Valley Road Pipeline - Hydrotech Pipeline, Inc. New Hogan Dam Power Project – McGuire & Hester Lake Mendocino Power Project - Underground Construction Co. State Building in San Francisco - Vanucci Brothers, Inc. Moscone Convention Center - Rosendin Electric, Inc.

Major Claims Defense Assignments Include . . . Trial Testimony Claim by Zachry – Port of Houston (Harris Co., Texas) Chapin Residence / Claim of Nolan – Jane E. Chapin (Napa Co., California) CSU Fullerton Telecommunications Upgrade Project – Amelco Electric (Orange Co., California) Creekview Apartments – Zumalt Construction (Contra Costa Co., California) UCSF Medical Center Ophthalmology Offices - American Bonding Co. (San Francisco Co., California)

Arbitration Testimony Burgos Gas Pipeline & Facilities, Mexico – El Pas Gas (ICC) Corocoro FSO, Venezuela – Conoco-Phillips (ICC) Bonanza Diesel Generation Facility, Guatemala – Duke Energy (ICC) Placer Corporate Center – Sierra Holdings, Inc. (AAA) S. Novato Blvd. Median Improvements – North Bay Construction (AAA) Green River Water Treatment Plant – Westates Construction (Water Board Hearing) Cabrillo Mole Improvements – City of Avalon (AAA) California State Prison at Riverside – Dept. of Corrections (OAH) I-880 San Leandro Soundwall - C. C. Meyers, Inc. (AAA) Milipitas Holiday Inn - Dillingham Construction, Inc. (AAA) WMATA Anacostia River Tunnel - Hitachi Heavy Industries (AAA) Highway 4 Railroad Bridge - Bay Cities Paving & Grading (OAH) Scianamblo Residence - Michael Scianamblo, DDS (AAA)

Mediation Presentation Santa Rosa JC Main Library – Santa Rosa Junior College (Wulff) Tahoe Forest Hospital Central Plant & Western Addition – TFH District (Person) City Golf Course Club House – City of Antioch (Wulff) Geysers Pipeline – City of Santa Rosa (Wulff) Central Maintenance Facility – City of Fremont (Shane) Valley Presbyterian Hospital – Fireman’s Fund (Frank) Lodge at Torrey Pines – Evans Hotels (Frank) Staples Arena, LA – NBBJ, Inc. (Wulff) North Beach Garage – MH Construction Management (Wulff) City View Terrace – Telacu Affordable Housing (Gibbs) Hwy 80 Soundwall at Roseville – Teichert Precast (Wulff) Livermore Police Facility – Allen Bender, Inc. (Kongsgaard) West Coast Consolidation Project – Schilling McCormick (Harris) Cowlitz Falls Hydroelectric Project - Lewis County P.U.D. (Piazza) Elizabeth Ustach Middle School - Teichert Construction Co. (Piazza) S.F. Federal Building @ 88 Kearny - Swinerton & Walberg (Fannin)

Negotiation Presentation Piedmont Elementary School – Piedmont Unified School District

Page 4 of 6

California State Prison at Coalinga – Dept. of Corrections O’Connor Woods Retirement Housing & Care Project - St. Joseph’s Health Care San Antonio Manufacturing Facility - VLSI Technologies

Settled After Deposition Watsonville Millenium High School – Pajaro Unified School District New Bay Bridge YBI Anchorage – West Bay Builders Chapin Residence / Claim of Nolan – Jane E. Chapin San Diego MWWD Digesters at MBC – Limitorque UC Davis Food & Agricultural Building - UC Davis Office of Architects

Analysis and/or Report Only Lake Hodges Pump Station – San Diego Water Authority Vacaville Waterlines Upgrade – City of Vacaville BART Coliseum & Walnut Creek Station Improvements - United Pacific Insurance Los Angeles Convention Center Expansion - JWP University Mechanical American River College Student Services Building - Carissimi Rohrer & Associates Cherry Eleanor Pump Station - SF Public Utilities Commission San Jose Convention Center - San Jose Redevelopment Agency Alvarado Water Treatment Facility - Union Sanitary District

Major Claims Mitigation & Scheduling Support Assignments Include . . . Mediation & DRB DRB Member: Hwy 237 & 880 Interchange – Caltrans & Desilva Gates Mediator: Natividad Medical Center – Swinerton & Walberg & CRSS Constructors

Scheduling & Schedule Review Berry Creek Rancheria Casino – Tyme Maidu Tribe Fantasy Springs Casino – Hainline & Associates Chukchansi Gold Casino – Cascade Entertainment Group Aladdin Hotel & Casino Mixed Use Development – Aladdin Gaming, LLC 98 Bond Fund Program Master Implementation Schedule – Clark County School District 201 Post Earthquake Retrofit – Trinty Properties San Joaquin Transportation Corridor - Kirkwood Dynalectric Co. Shell Martinez Clean Fuels Project - UCI Construction, Inc. Merck BTMC Phase 1 Pharmaceutical Facility - JWP Advanced Technologies, Inc. Carmel Reclaimed Water Facility - K. G. Walters Construction Co. New Denver International Airport Underground Fueling System - Trautman & Shreve I-880 Davis/Lewelling Widening - O. C. Jones & Sons BART Colma Yard Retaining Wall - O.C. Jones & Sons SF Sheriff’s Facility Addition - Lera Electric, Inc. Hyperion Full Secondary Head Works - Rosendin Electric, Inc. Cal State Prison @ Pelican Bay - Rosendin Electric, Inc. UC Davis Memorial Union Expansion - UC Davis Office of the Architect Coast Guard Two Rock Training Center - Wright Contracting, Inc.

Claim Mitigation & Dispute Audit Matter of J. A. Jones – Fireman’s Fund Hawaii Power Center - Hygrade Electric, Inc. UC Berkeley Haas Graduate School of Business - UC Berkeley Office of Architects Moscone Convention Center Addition - Brayer Electric, Inc. USS-Posco Pittsburg Rolled Steel Plant Modernization - US Steel IBM Almaden Research Center - Rosendin Electric, Inc. San Francisco Hilton Tower Addition - Rosendin Electric, Inc. Portman Hotel - D. Zelinski & Sons.

Page 5 of 6

Seminars, Presentations & Consultations ABA Forum on Construction Annual Meeting 2010, Austin AACEI Annual Meeting 2008, Toronto AACEI Annual Meeting 2007, Nashville AACEI Annual Meeting 2006, Las Vegas AACEI Annual Meeting 2005, New Orleans FHwA Standard Schedule Specification Modernization & Enhancement AACEI Annual Meeting 2004, Washington DC AACEI Annual Meeting 2003, Orlando Lorman Seminar 2002 & 2003 Federal Highway Administration, Denver, CO AACEI Annual Meeting 2002, Portland AACEI Annual Meeting 2000, Calgary Sletten Construction, Las Vegas, NV AGC San Diego Chapter 1997 North Bay Construction, Petaluma, CA AGC San Diego Chapter 1996 Primavera Users Group of Sacramento Primavera Users Group of San Francisco Project Management Institute Symposium ’95, New Orleans, LA CALTRANS District 4, Oakland, CA UC Extension / Jim Tario, Pleasanton, CA Oliver de Silva, Inc., Hayward, CA Don Dowd Co., Sebastopol, CA Olsen Electric Co., San Francisco, CA UC Regents, San Francisco & Los Angeles, CA Rosendin Electric, Inc., San Jose, CA Teichert Construction Co., Sacramento, CA Toyota Motor Corporation, Tokyo, JAPAN

In-House Scheduling & Automation UCI Construction, Martinez, CA California Homes, Inc., Santa Rosa, CA Dillingham-Nielsen, San Diego CALTRANS Photogrammetry Division, Sacramento, CA

Page 6 of 6

Exhibit B

August 29, 2008 Commitment Schedule August 29, 2008 Commitment Schedule

DRAFT

PRELIMINARY

19-Feb-09

5

20-Feb-09

6

21-Feb-09 22-Feb-09 23-Feb-09 24-Feb-09 24 Feb 09 25-Feb-09 26-Feb-09 27-Feb-09 28-Feb-09 01-Mar-09 02-Mar-09 03-Mar-09 04-Mar-09 05-Mar-09 06-Mar-09 07-Mar-09

7 1 2 3 4 5 6 7 1 2 3 4 5 6 7

08-Mar-09

1

T-Horse

See Reid depo pages 16 & 17

1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4

See Reid depo pages s 20 & 23

7

18-Jan-09 19-Jan-09 20-Jan-09 21-Jan-09 22-Jan-09 23-Jan-09 24-Jan-09 25-Jan-09 26-Jan-09 27-Jan-09 28-Jan-09 29-Jan-09 30-Jan-09 31-Jan-09 01-Feb-09 02-Feb-09 03-Feb-09 04-Feb-09 05-Feb-09 06-Feb-09 07-Feb-09 08-Feb-09 09-Feb-09 10-Feb-09 11 Feb 09 11-Feb-09 12-Feb-09 13-Feb-09 14-Feb-09 15-Feb-09 16-Feb-09 17-Feb-09 18-Feb-09

Free e Slack #1 (Stand-by for or Enbridge)

17-Jan-09

24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 15:21:00 19:30:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 7:00:00

Client Project Name Thrs Thrs Thrs Thrs Thrs Thrs Thrs

17:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00

T-HRSE T-HRSE T-HRSE T-HRSE T-HRSE T-HRSE T-HRSE T-HRSE / GC-650 GC-650 GC-650 SW Pass GC-650 GC-650 GC-650 GC-650 GC-650 GC-650 GC-650 GC-650 GC-650 GC-650 AMSD AMSD AMSD AMSD AMSD AMSD AMSD AMSD CORE-T CORE-T CORE-T CORE-T CORE-T CORE-T CORE-T CORE-T GC-650 GC-650 GC-650 GC-650 GC GC-650 650 GC-650 GC-650 GC-650 GC-650 GC-650

24:00:00

GC-650

Enbr

x

x

14:05:00 6:00:00 3:45:00 1:00:00 1:00:00

GC-650 CORE-M CORE-M CORE-M CORE-M CORE-M CORE-T CORE-T CORE-T CORE-T T-HRSE T-HRSE T-HRSE T-HRSE T-HRSE T-HRSE T-HRSE T-HRSE T-HRSE T-HRSE T-HRSE T-HRSE T-HRSE T-HRSE T HRSE T-HRSE T-HRSE T-HRSE T-HRSE T-HRSE T-HRSE T-HRSE GOM Transit to Mobile Transit to Mobile CORE-T CORE-M CORE-M CORE-M CORE M CORE-M CORE-M CORE-M CORE-M CORE-T CORE-T CORE-T AMSD AMSD AMSD AMSD AMSD / Transit

Enbr Enbr / AMC Enbr / AMC Enbr / AMC Enbr / AMC AMC AMC AMC C AMC AMC Thrs Thrs Thrs Thrs Thrs Thrs Thrs Thrs Thrs Thrs Thrs Thrs Thrs Thrs Thrs Thrs Thrs Thrs Thrs Thrs Thrs Thwk

x x x x x x x x x x

x x x x x x x x x x

Thwk

Shenzi

11:15:00

8:39:00 4:30:00

Per Reid pages 33 & 34: Remobilize to Enbridge after receiving new procedures and equipment

Per Reid pages 39, 42 & 43: Demobilize extra equipment used in revised Enbridge procedure

2:00:00 4:00:00

24:00:00 24:00:00 24:00:00 00 00 24:00:00 24:00:00 12:00:00

12:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 2:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 23:20:00 1:10:00

22:00:00

0:40:00 22:50:00 24:00:00 24:00:00 24:00:00 3:13:00

20:47:00

24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 21:10:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 18:00:00

Aquatic Reels Installation

2:50:00

6:00:00 24:00:00 24:00:00 24:00:00

BOA Sub-C Sub C Midnight Reports Logo At Top

Vessel Location

Enbrdg

24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00

9:55:00 18:00:00 20:15:00 21:00:00 19:00:00 Fre ee Slack #2

3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6

SBMA

09-Dec-08 10-Dec-08 11-Dec-08 12-Dec-08 13-Dec-08 14-Dec-08 15-Dec-08 16-Dec-08 17-Dec-08 18-Dec-08 19-Dec-08 20-Dec-08 21-Dec-08 22-Dec-08 23-Dec-08 24-Dec-08 25-Dec-08 26-Dec-08 27 Dec 08 27-Dec-08 28-Dec-08 29-Dec-08 30-Dec-08 31-Dec-08 01-Jan-09 02-Jan-09 03-Jan-09 04-Jan-09 05-Jan-09 06-Jan-09 07-Jan-09 08-Jan-09 09-Jan-09 10-Jan-09 11-Jan-09 11 Jan 09 12-Jan-09 13-Jan-09 14-Jan-09 15-Jan-09 16-Jan-09

T-Hawk

12:45:00

Free Slack #3

2

(De)Mobe for Thawk

24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00

SBMA

08-Dec-08

(De)Mobe for Others

Thund nderhorse

2 3 4 5 6 7 1

Enbridge

01-Dec-08 02-Dec-08 03-Dec-08 04-Dec-08 05-Dec-08 06-Dec-08 07-Dec-08

AMC Standby

Incidental To

Embridge

As-Built Schedule

From Boa Sub C C's s Daily Progress Reports

As-Built Bar Chart

Thunderhorse

Exhibit C

Sh En Hr Ak x x x x x x x

Hire

Location

Wind

Sea

Weather

Crew

Subs & Other

On On On On On On On

SW Pass Anchor Thunderhorse Thunderhorse Thunderhorse Thunderhorse Thunderhorse Thunderhorse

NNW 20 SE10 SSW18 20 NNE6 NNW21 15

1-1.5 1.5 1.5 1.5-2 2 1.5 1.5

P Cloudy P Cloudy P Cloudy Stable M Cloudy P Cloudy

50 50 50 51 51 51 51

40 39 39 35 34 34 34

51

44

51 51 49 49 49 49 49 49 49 49 49 50 50 50 49 48 48 48 48 48 48 47 47 48 48 53 53 53 52 52 52 52 52 52 52 52 52 52 52

44 44 45 45 45 45 45 45 46 43 43 43 28 19 18 18 18 18 18 17 18 16 16 12 12 17 18 18 24 46 46 46 46 46 46 46 46 45 45

Thrs / Enbr

x

x

On

T-Horse, GC-650

25-30

2-3

Enbr Enbr Enbr Enbr Enbr Enbr Enbr Enbr Enbr Enbr Enbr Enbr Enbr In Port In Port In Port In Port In Port In Port In Port In Port In Port In Port In Port In Port In Port In Port In Port In Port Enbr Enbr Enbr Enbr Enbr Enbr Enbr Enbr Enbr Enbr

x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x

x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x

On On On On On On On On On On On On On On On On On On On On On On On Off On On On On On On On On On On On On On On On

GC-650 SW Pass Anchor SW Pass Anchor Block 550 Block 550 Block 650 Block 650 Block 650 Block 650 Block 650 Block 650 Block 650 Mobile Ship Channel Mobile Port Mobile Port Mobile Port Mobile Port Mobile Port Mobile Port Mobile Port Mobile Port Mobile Port Mobile Port Mobile Port Mobile Port Mobile Port Mobile Port Mobile Port Mobile Port Mobile Port Shenzi-650 Shenzi-650 Shenzi-650 Shenzi-650 Shenzi 650 Shenzi-650 Shenzi-650 Shenzi-650 Shenzi-650 Shenzi-650

SSE28 NW22 NW30 NE15 SSE23 SE18 S10 SSE13 SE14 SE18 SSW6 SW12 N36 E11 SE17 S3 SE10 SSE13 S11 NW10 N5 WSW11 NNE14 ENE4 S6 SSW14 Light S6 NW10 S18 E7 S23 SW16 NNE21 NNE13 N16 NE6 NE23 NE17

3 2 2 1 1.5 1.5 1 .5 1 1 .2 .6 2

.5 .1 1.5 1.5 1.5 1 1 .3 1.2 1-1.5

On

Transit to Mobile

NE15

1

On On On On On On On On On On On On On On On On On On On On On On On On On On On On On On Off On

Mobile State Docks Theodore Channel Mobile Core Industries Mobile Core Industries Mobile Core Industries Mobile Core Industries Mobile Core Industries Mobile Core Industries Mobile Core Industries Mobile Core Industries Mobile Core Industries Thunderhorse Thunderhorse Thunderhorse Thunderhorse SW Passage SW Passage Thunderhorse Thunderhorse Thunderhorse Thunderhorse Thunderhorse Thunderhorse Thunderhorse Thunderhorse Thunderhorse Thunderhorse Thunderhorse Thunderhorse Thunderhorse Gulf of Mexico Gulf of Mexico

N7-9 WNE35 NNW11 Var 2 S4-6 SW4-6 N7-9 Var1-3 SE7 S11 N10-15 N20 N20 Var4 E25 N28 WSW20 NE10 10 SSE20 SE15 SE20 SE30-35 SE35-40 10 15-Oct SSW20 SE15 20 E15-20 E15 SW20

0 1.5 1.5-2 .3 2.5 2 1.5 1.5-2 1 1 1.5-2 2 4 5-6 4 1 2 1.5 1.5 2 1.5-2 1.5-2

On

Gulf of Mexico

N25

Thwk

On

Mobile Core Industries

Light

Thwk AMC AMC AMC AMC AMC AMC AMC AMC AMC AMC AMC AMC AMC AMC

x x x x x x x x x x x x x x

On On On On On On On On On On On On On On On

Mobile Core Industries Mobile Core Industries Mobile Core Industries Mobile Core Industries Mobile Core Industries Mobile Core Industries Mobile Core Industries Mobile Core Industries Blank Blank Blank

SW10 N15 NE10 SE12 SE4 S12 S12 NW15 Blank Blank Blank

AMC

x

On

x x x x x x x x x x x x x x x x x x x x x

M Cloudy Showers Cloudyy P Cloudy Cloudy P Cloudy P Cloudy P Cloudy P Cloudy P Cloudy P Cloudy P Cloudy P Cloudy M Cloudy Cloudy Fog Fog Cloudy Cloudy M Cloudy P Cloudy P Cloudy P Cloudy M Cloudy Fog Rain Fog P Cloudy Rain P Cloudy Clear P Cloudy Rain Overcast Overcast P Cloudy P Cloudy M Cloudy M Cloudy P Cloudy

52

45

P Cloudy M Cloudy P Cloudy Clear Clear P Cloudy Overcast Overcast Fog g M Cloudy

52 52 52 59 51 51 45 45 45 45

22 22 19 20 18 18 18 18 18 17

M Cloudy P Cloudy P Cloudy T-storms Cloudy P Cloudy Clear Clear Clear

52 51

27 29

51 51 51 51 50 82 52 52 52 52 52 49 48 48 48 48 48 47

34 26 26 35 35

2

47

25

.1

48

25

Blank Blank Blank

50 50 50 51 49 50 50 Blank Blank Blank

25 25 21 21 21 20 20 Blank Blank Blank

Clear Showers

P Cloudy Cloudy Cloudy Cloudy Blank Blank Blank

33 33 33 33 33 31 31 31 30 28 28 25

Exhibit D.1

No Impact to Tailing Commitments No Impact to Tailing Commitments Part 1 of 2

DRAFT

PRELIMINARY

Exhibit D.2

No Impact to Tailing Commitments No Impact to Tailing Commitments Part 2 of 2

DRAFT

PRELIMINARY

Synergen / Aker Claim

Exhibit E

98 cd

"Standby" Claim

T-Hawk

T-Horse

Enbrdg

Shenzi

Possible AMC Standby

(De)Mobe for Others

(De)Mobe for Thawk

T-Hawk

T-Horse 24:00:00 24 00 00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 12:45:00

12:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 15:21:00 19:30:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 7:00:00

9:55:00 18:00:00 20:15:00 21:00:00 19:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 12:00:00

3:13:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 21:12:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 18:00:00

868:26:00

0.5 cd 1.0 cd 1.0 cd 1.0 cd 1.0 cd 1.0 1 0 cd 1.0 cd 1.0 cd 0.6 cd 0.8 cd 1.0 cd 1.0 cd 1.0 cd 1.0 cd 1.0 cd 1.0 cd 0.3 cd

12:00:00

8:39:00 4:30:00

17:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 14:05:00 6:00:00 3:45:00 1:00:00 1:00:00

0.4 cd 0.8 cd 0.8 cd 0.9 cd 0 8 cd 0.8 1.0 cd 1.0 cd 1.0 cd 1.0 cd 1.0 cd 0.5 cd

0.1 cd 1.0 cd 1.0 cd 1.0 cd 1.0 cd 1.0 cd 0.9 cd 1.0 cd 1.0 cd 1.0 cd 1.0 cd 1.0 cd 0.8 cd

36.2 cd

Free Slack #1

2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1

From BSC DPR's

Incidental To

2:00:00 4:00:00

12:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 22:50:00

0:40:00 22:50:00

171:57:00

3:13:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 21:10:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 18:00:00

Aquatic Reels Installation 503:59:00

1848:00:00

294:50:00

8:48:00

120:00:00

5.0 cd

523:31:00

282:23:00

2:00:00 4:00:00

T-HRSE

Thrs

T-HRSE

Thrs

T-HRSE

Thrs

T-HRSE

Thrs

T-HRSE

Thrs

T-HRSE

Thrs

T-HRSE T HRSE

Thrs

T-HRSE / GC-650

Thrs / Enbr

GC-650

Enbr

GC-650

Enbr

SW Pass

Enbr

GC-650

Enbr

GC-650

Enbr

GC 650 GC-650

Enbr E b

GC-650

Enbr

GC-650

Enbr

GC-650

Enbr

GC-650

Enbr

GC-650

Enbr

6:00:00 24:00:00 24:00:00 24:00:00 459:39:00

282:50:00

8:50:00

Enbr

GC-650

Enbr

AMSD

In Port

AMSD

In Port

AMSD

In Port

AMSD

In Port

AMSD

In Port

AMSD

IIn Port P t

AMSD

In Port

AMSD

In Port

CORE-T

In Port

CORE-T

In Port

CORE-T

In Port

CORE-T

In Port

CORE-T

In Port

CORE-T

In Port

CORE-T

In Port

CORE-T

In Port

GC-650

Enbr

GC-650

Enbr

GC 650 GC-650

Enbr

GC-650

Enbr

GC-650

Enbr

GC-650

Enbr

GC-650

Enbr

GC-650

Enbr

GC-650

Enbr

GC-650

Enbr

GC-650

Enbr

GC-650

Enbr

CORE-M

Enbr / AMC

CORE-M

Enbr / AMC

CORE-M

Enbr / AMC

CORE M CORE-M

Enbr / AMC

CORE-M

AMC

CORE-T

AMC

CORE-T

AMC

CORE-T

AMC

CORE-T

AMC

T-HRSE

Thrs

T-HRSE

Thrs

T-HRSE

Thrs

T-HRSE

Thrs

T-HRSE

Thrs

T-HRSE

Thrs

T-HRSE

Thrs

T-HRSE

Thrs

T-HRSE

Thrs

T-HRSE

Thrs

T-HRSE

Thrs

T-HRSE

Thrs

T-HRSE

Thrs

T-HRSE

Thrs

T-HRSE

Thrs

T-HRSE

Thrs

T-HRSE

Thrs

T-HRSE

Thrs

T-HRSE

Thrs Thrs

T-HRSE

Thrs

Gulf of Mexico

Thwk

Transit to Mobile

2:50:00

170:47:00

Client Project Name

T-HRSE

24:00:00 24:00:00 24:00:00 20:47:00

1848:00:00

Vessel Location

GC-650 GC 650

12:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 2:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 23:20:00 1:10:00

22:00:00

2:48:00

11:15:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24 24:00:00 00 00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00

17:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 14:05:00 6:00:00 3:45:00 1:00:00 1:00:00

12:00:00

Reels should have been  installed starting on 2/21  to allow for scheduled  sail‐away on 2/28 and to   make subsequent period  aa compensable stand‐by compensable stand‐by

6:00:00 24:00:00 24:00:00 24:00:00

1.0 cd 1.0 cd 1.0 cd 1.0 cd 1.0 cd

Shenzi

8:39:00 4:30:00

9:55:00 18:00:00 20:15:00 21:00:00 19:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00

1:10:00 24:00:00 24:00:00 24:00:00 20:47:00

24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 15:21:00 19:30:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 24:00:00 7:00:00

Enbrdg

Free Slack #2

01-Dec-08 01 D 08 02-Dec-08 03-Dec-08 04-Dec-08 05-Dec-08 06-Dec-08 07-Dec-08 07 Dec 08 08-Dec-08 09-Dec-08 10-Dec-08 11-Dec-08 12-Dec-08 13-Dec-08 14 D 08 14-Dec-08 15-Dec-08 16-Dec-08 17-Dec-08 18-Dec-08 19-Dec-08 20-Dec-08 20 Dec 08 21-Dec-08 22-Dec-08 23-Dec-08 24-Dec-08 25-Dec-08 26-Dec-08 27 Dec 08 27-Dec-08 28-Dec-08 29-Dec-08 30-Dec-08 31-Dec-08 01-Jan-09 02-Jan-09 02 Jan 09 03-Jan-09 04-Jan-09 05-Jan-09 06-Jan-09 07-Jan-09 08-Jan-09 09 Jan 09 09-Jan-09 10-Jan-09 11-Jan-09 12-Jan-09 13-Jan-09 14-Jan-09 15-Jan-09 16-Jan-09 17-Jan-09 18-Jan-09 19-Jan-09 20-Jan-09 21-Jan-09 22 Jan 09 22-Jan-09 23-Jan-09 24-Jan-09 25-Jan-09 26-Jan-09 27-Jan-09 28-Jan-09 29-Jan-09 30-Jan-09 31-Jan-09 01-Feb-09 02-Feb-09 03-Feb-09 04-Feb-09 05-Feb-09 06-Feb-09 07-Feb-09 08-Feb-09 09-Feb-09 10-Feb-09 11-Feb-09 12-Feb-09 13-Feb-09 14-Feb-09 15-Feb-09 16-Feb-09 17-Feb-09 18-Feb-09 19-Feb-09 20-Feb-09 21-Feb-09 22-Feb-09 23-Feb-09 24-Feb-09 25-Feb-09 26-Feb-09 27-Feb-09 28-Feb-09 01-Mar-09 02-Mar-09 03-Mar-09 04-Mar-09 05-Mar-09 06-Mar-09 07-Mar-09 08-Mar-09

PCF Observations of BOA Sub-C Daily Progress Reports

Free Slack #3

Standby Analysis

Logo At Top Sh En Hr Ak x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x

x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x

Thwk

Transit to Mobile

Thwk

CORE-T

Thwk

CORE-M

AMC

CORE-M

AMC

CORE-M

AMC

CORE-M

AMC

CORE-M

AMC

CORE-M

AMC

CORE-M

AMC

CORE-T

AMC

CORE-T

AMC

CORE-T

AMC

AMSD

AMC

AMSD

AMC

AMSD

AMC

AMSD

AMC

AMSD / Transit

AMC

x x x x x x x x x x x x x x x

Hire On O On On On On On On On On On On On On O On On On On On On On On On On On On On On On On On On Off On On On On On On On On On On On On On On On On On On On On On On On On On On On On On On On On On On On On On On On On On On On On On On Off On On On On On On On On On On On On On On On On On On On

PCF Notes Based on DPRs and Commitment Schedules weather h standby db weather standby, project activities project activities jumper installation jumper installation jumper installation jumper installation transit, EFL installation jumper installation weather standby weather standby weather standby, jumper installation jumper installation jjumper installation i t ll ti jumper installation jumper installation jumper installation jumper installation jumper installation demob jumper installation, transit preparing demob of Enbr & Thrs eqmt / awaiting customs for eqmt offload offload Enbr & Thrs eqmt / crane wire maint offload Enbr & Thrs eqmt / crane wire maint offload Enbr & Thrs eqmt / crane wire maint (Christmas Day) crane wire maintenance crane wire maintenance crane wire maintenance preparing demob of Enbr & Thrs eqmt transit to CORE, demob of Thrs demob of Thrs / Standby at Core 'alongside alongside CORE facility, AMC stand-by' stand by 'Stand by for AMC' 'Stand by for AMC' 'Stand by for AMC' 'Stand by for AMC' transit, mob/demob to Enbridge transit, jumper installation jumper installation jumper installation, equipment breakdown jumper installation, equipment breakdown jumper installation (Shenz Clamp Delay on 1/5/09 Schedule) jumper installation, weather standby (Shenz Clamp Delay on 1/5/09 Schedule) jumper installation, weather standby (Shenz Clamp Delay on 1/5/09 Schedule) jjumper p installation,, equipment q p breakdown (Shenz ( Clamp p Delayy on 1/5/09 Schedule)) jumper installation, equipment breakdown (Shenz Clamp Delay on 1/5/09 Schedule) jumper installation, transit to Alabama State Docks (Shenz Clamp Delay on 1/5/09 Schedule) transit from Enbridge to Alabama State Docks, mob/demob from Enbridge, (Shenz Clamp Delay on 1/5/09 Schedule) transit from Alabama State Docks to CORE, mob/demob from Enbridge, AMC Vessel Dockside Stand by (Shenz Clamp Delay on 1/5/09 Schedule) transit from Alabama State Docks to CORE, mob/demob from Enbridge, AMC Vessel Dockside Stand by (Shenz Clamp Delay on 1/5/09 Schedule) mob/demob of Enbridge, Shenzi, AMC Vessel Dockside Stand by (Shenz Clamp Delay on 1/5/09 Schedule) mob/demob of Enbridge, Enbridge Shenzi Shenzi, AMC Vessel Dockside Stand by (Shenz Clamp Delay on 1/5/09 Schedule) AMC Vessel Dockside Stand by / (Shenz Clamp Delay on 1/5/09 Schedule) AMC Vessel Dockside Stand by AMC Vessel Dockside Stand by AMC Vessel Dockside Stand by AMC Vessel Dockside Stand by Project j = BP Jumper p Recoveryy / mob for Thunderhorse transit transit, project activities project activities project activities client standby, project activities, transit still at Thunderhorse, standby is at Thunderhorse field client standby standby, project activities activities, transit project activities transit, project activities project activities project activities weather standby, project activities weather standby weather standby weather standby, project activities project activities project activities project activities still at Thunderhorse, standby is at Thunderhorse field still at Thunderhorse Thunderhorse, standby is at Thunderhorse field / AB for Chain Loadout for T-Hawk on 03-20-09 Schedule Chain measuring, chain transfer Chain measuring, chain transfer Chain measuring, chain transfer at CORE, mob for Thunderhawk, chain inspection Remove chain & wire, AMC Vessel Dockside Stand by AMC Vessel Dockside Stand by AMC Vessel Dockside Stand by AMC Vessel Dockside Stand by mob for Thunderhawk, AMC Vessel Dockside Stand by Shenzi demob after customs clearance, AMC Vessel Dockside Stand by mob for Thunderhawk, AMC Vessel Dockside Stand by mob for Thunderhawk, AMC Vessel Dockside Stand by mob for Thunderhawk, AMC Vessel Dockside Stand by mob for Thunderhawk, AMC Vessel Dockside Stand by transit from CORE to Alabama State docks, AMC Vessel Dockside Stand by mob for Thunderhawk, AMC Vessel Dockside Stand by (AB for Aquatic Reel Instl on 03-20-09 Schedule) mob for Thunderhawk (AB for Aquatic Reel Instl on 03-20-09 Schedule) vessel on hire, mob for Thunderhawk (AB for Aquatic Reel Instl on 03-20-09 Schedule) vessel on hire, transit(AB for Aquatic Reel Instl on 03-20-09 Schedule)

Exhibit B

August 29, 2008 Commitment Schedule August 29, 2008 Commitment Schedule

DRAFT

PRELIMINARY