IN 1H UNITED STATES BANUPTCY COURT
FOR THE DISTRICT OF DELA WAR
Inre:
PACIFIC ENERGY RESOURCES LTD., et ai., 1
) Chapter 1 1
)
)
Case No. 09-1 0785~L-
Debtor.
)
) )
A~ 614'47&'c'
l..
lf ~PtrJtt-F MILLSTREAM ENERGY, LLC TO THE FEE AUDITOR'S FINAL REPORT REGARING THE FIRST INTERIM APPLICATION OF MILLSTREAM ENERGY, LLC FOR THE PERIOD MACH 9, 2009 THROUGH MAY 31.2009
Comes now Mlstrea Energy, LLC ("Milstream") and fes its response to the
Fee Auditor's Final Report (the "Final Report") (Docket No. 786) regarding the Firt Quaerly
Application for Compensation and Reimbursement of Expenses of
Mlstream Energy, LLC, as
Engineering consultant to the Debtors and Debtors in Possession, for the Period from March 9,
2009, though May 3 1,2009 (the "First Interi Fee Application") (Docket No. 614), and
respectfly states as follows:
The followig comments and rebutts are offered to the Discussion section of the
'Fee Auditor's Final Report Regarding Interi Fee Application of
Millstream Energy, LLC, for
the Interi Period', as prepared by Waren H. Smith & Associates, P.C.
The Debtors in these cases, along with the last four digits of each of the Debtors' federal tax identification number, are: Pacific Energy Resources Ltd. (3442); Petrocal Acquisition Corp. (6249); Pacific Energy Alaska Holdings, LLC (ta I.D. # not available); Cameros Acquisition Corp. (5866); Pacifc Energy Alaska Operating LLC (7021); San Pedro Bay Pipeline Company (1234); Cameros Energy, Inc. (9487); and Gotland Oil, Inc. (5463). The mailing address for all of
the Debtors is I i I W. Ocea Boulevard, Suite 1240, Long Beach, CA 90802.
68773-o02\DOCS_LA:209240. i
Report Item 3.IDiscussion)
Millstream disagrees with the recommendation to reduce fees by $6000.00 for the
business between Houston, LAX and the Peoples Republic of China (pRq for the two trps
made durng the period May 9, 2009 to May 22,2009. The Fee Auditor references Delaware
Local Rule 2016-2(d)(vi) which assets that trvel tie durng which no work is pedormed shall
be bil separatly and at no more tht 50% of
the reguar hourly rate. Ths discount was not
applied for the forty (40) bilable hours in question and Milstream should not be required to do
so for the following reasons:
In an effort to lift the ficial burden to the Debtors given their Chapter 1 1
status, and prior to the first trp to the PRC, Pacific Energy's CFO, Mr. Gerald Tywoniuk,
requested Milstream to limit chargeable consulting fee hours to 8 hours per day regardless of
the
actu number of hours worked durng the trps. Milstream honored ths request in an effort
limit fees for both of
the subject trps even though work days averaged 12-14 hours per day.
There were 13 work days which all exceeded 8 hours per day to accommodate the numerous
work presentations and meetings that ha to be concluded durg the short period of time in
countr. Using the low end of
the average hour per day actu worked of 12 hours per day,
Milstream fodeited legitimate consulting fees of $15,600 (4 additiona hours per day x 13
workig days x $300 per hours). To fuer limit the trvel time to 50% of
reguar hour and
fodeit an additional sum of
$6000.00 is uneaonable in the context of
the time and fees that
were conceded based on the agreement with Debtors.
Milstream is an engineering consultig firm registered and operating under Texas
68773-002\DS _LA:209240. i
law and would have no knowledge of Delaware law regarding the discount issue relating to non-
working travel hours. The Debtors, Zol For Copper (CRO), and Pachulski Stang Ziehl & Jones
LLP (Chapter 11 Counel) were all awar of
the trps to PRe in an effort to secure potential
equity ficing. None of
these paries advised Milstream that travel time was to be limted to
50% of reguar hours. If there would have been an awareness of ths restrction, Milstream
would not have agreed to limit reguar work hours to 8 hours per day knowing the extended
hours and amount of work tht was required for the extensive travel, long presentations,
meetings with local companes, and the substatial volume of follow-up consulting work that
was involved to meet restrctive deadlines.
.L
Dated: November 30 , 2009 MILLSTREAM ENERGY, LLC
Mark A. Clemans, P.E.
fl~A~__
4918 Menlo Park Drive Sugar Land, TX 77479
Telephone: 281/910-0245
Emal: txac65)comcast.net
Engineering Consultant for Debtor and Debtor in Possession Pacific Energy Resources Ltd.
68773-002\DS_LA209240.!
IN THE UNITED STATES BANKRUPTCY COURT
In re: )
STATE OF
FOR THE DISTRICT OF DELAWARE
Chapter 1 1
)
PACIFIC ENERGY RESOURCES LTD., et al., i )
Case No. 09- 1 0785 (KJC)
Debtors. )
DELAWARE )
) ss:
(Jointly Administered)
AFFIDAVIT OF SERVICE
COUNTY OF NEW CASTLE )
Kathleen Forte Finlayson, being duly sworn according to law, deposes and says
that she is employed by the law firm of
Pachulski Stang Ziehl & Jones LLP, attorneys for the
Debtors in the above-captioned action, and that on the 1 st day of December, 2009 she caused a
copy of
the following document(s) to be served upon the parties on the attached service lists in
the manner indicated:
Response of Milstream Energy, LLC to Fee Auditor's Final Report
Regarding First Quarterly Fee Application
DEBR L. YOU
NOTARY PUBIC STATE OF DELAWAR
.. cemiJiup.u 18. 3)11
i The Debtors in the s, along with the last four digits of each of the Debtors' federal tax
identification number, are: Pacific Energy Resources Ltd. (3442); Petrocal Acquisition Corp. (6249); Pacific Energy Alaska Holdings, LLC (tax I.D. # not available); Cameros Acquisition Corp. (5866); Pacific Energy Alaska Operating LLC (7021); San Pedro Bay Pipeline Company (1234); Cameros
Energy, Inc. (9487); and Gotland Oil, Inc. (5463). The mailing address for all of
the Debtors is 111 W.
Ocean Boulevard, Suite 1240, Long Beach, CA 90802.
Pacific Energy Resources Ltd. Fec App Service List
Case No. 09- 1 0785 Document No. 147432
03 - Hand Delivery 06 - First Class Mail
Hand Delivery (Counsel to Offcial Committee of Unsecured Creditors) David B. Stratton, Esquire James C. Carignan, Esquire Pepper Hamilton LLP
Hercules Plaza, Suite 1500
01 - Interoffice Pouch
1313 Market Street Wilmington, DE 19899
(Counsel for Debtors) Laura Davis Jones, Esquire James E. O'Neil, Esquire Kathleen P. Makowski, Esquire Pachulski Stang Ziehl & Jones LLP 919 North Market Street, 17th Floor P.O. Box 8705 Wilmington, DE 19899-8705
First Class Mail (Debtors)
Mr. Gerry Tywoniuk Senior Vice President & CFO Pacific Energy Resources
1 1 1 We. Ocean Boulevard, Ste 1240
Long Beach, CA 90802
Interoffice Pouch to Los Angeles (Counsel for Debtors) Robert M. Saunders, Esquire Ira b. Kharasch, Esquire Scotta E. McFarland, Esquire
-Pachulski Stang Ziehl & Jones LLP
10100 Santa Monica Blvd., 11 Floor
First Class Mail
(De,btors) Mr.'Scott W. Winn
Seiior Managing Director
. th
Zolfo Cooper 1 l6q Sixth Avenue, 24 Floor
Ne~York, NY 10026
, , th
Los Angeles, CA 90067
(via First Class Mail)
Hand Delivery (United States Tf!Jstee) Joseph McMahon, Esquire Office of the United States Trustee 1. Caleb Boggs Federal Building 844 North King Street, Suite 2207
Lockbox 35
(The Fee Auditor) Warren H. Smith Warren H. Smith & Associates, P.C. Repiiblic Center
3251... S1. Paul, Ste 1250
Dallas, Texas 75201
Wilmington, DE ' 19801
Hand Delivery (Copy Service)
Parcels, Inc.
Vito 1. DiMaio 230 N. Market Street Wilmington, DE 19801
'!.-'.
\..
"
First Class Mail
(Counsel to Official Committee of
Unsecured
Creditors) 'Francis J. Lawall, Esquire :Pepper Hamilton LLP 3000 Two Logaii Square Eighteenth & Arch Streets
Philadelphia, PAl 9103
First Class Mail
(counsel to Official Committee of
Unsecured Creditors)
Filiberto Agusti, Esquire
Steven Reed, Esquire
Joshua Taylor, Esquire Steptoe & Johnson LLP 1330 Connecticut Avenue NW Washington, DC 20036
First Class Mail
(counsel to Official Committee of
Unsecured Creditors)
Robbin Itkin, Esauire Katherine Piper, Esquire Kelly Frazier, Esquire Steptoe & Johnson LLP
2121 Avenue of
the Stars, 28th Floor
Los Angeles, CA 90067
68773-00 i \DOCS _DE: 14432. i
