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In re: )
Chapter 11
)
)
Debtors. )
FIRST MONTHLY APPLICATION FOR COMPENSATION AND REIMBURSEMENT OF EXPENSES OF MILLSTREAM ENERGY, LLC, AS ENGINEERING CONSULTANT TO THE DEBTORS AND DEBTORS IN POSSESSION, FOR THE PERIOD FROM MARCH 9. 2009 THROUGH MARCH 31. 2009
Name of Applicant:
Milstream Energy, LLC
Date of Retention:
Nunc Pro Tunc to March 9, 2009 by order entered on or about May 15,2009
March 9, 2009 through March 31, 20092
$33,450.00
$
91.70
_ final application.
interim
i The Debtors in these cases, along with the last four digits of each of
number, are: Pacific Energy Resources Ltd. (3442); Petrocal Acquisition Corp. (6249); Pacific Energy Alaska
Holdings, LLC (tax J.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
mailng address for all of
2 The applicant reserves the right to include any time expended in the time period indicated above in futue
application(s) if
the Debtors is 111 W. Ocean Boulevard, Suite 1240, Long Beach, CA 90802.
68773-002\DOCS_DE: 148984. 1
,PenodCoverea. Requested
,', '\Fees'
,:Reque,sted
Exenses
ApProved, Fees
MILLSTREAM PROFESSIONAL
'Name:fPrfessional
iidIvidual'
, Hourly."
, BiliigH
Rate
(in" ,eluding ...., . ... ..
,. . Total ;
" Cltpens~ti()ll)
,;.maigS)
Experience 22 Years
COMPENSATION BY CATEGORY
, TotalHours,
111.50
T otal.Fees '
$33,450.00
EXPENSE SUMMARY
"TotlExpe.nses "
Mileage Parking
$ 70.70
$ 21.00
3 Milstream may use one or more service providers. The service providers identified herein below are the primary
service providers for the categories described.
In re:
)
) ) ) )
Chapter 11
FIRST MONTHLY APPLICATION FOR COMPENSATION AND REIMBURSEMENT OF EXPENSES OF MILLSTREAM ENERGY, LLC, AS ENGINEERING CONSULTANT TO THE DEBTORS AND DEBTORS IN POSSESSION, FOR THE PERIOD FROM MARCH 9. 2009 THROUGH MARCH 31. 2009
Pursuant to sections 330 and 331 of Title 11 of
"Banptcy Rules"), and the Cour's "Administrative Order Under 11 U.S.C. 105(A) and
331 Establishing Procedures for Interim Compensation and Expense Reimbursement of
Professionals and Committee Members," entered on or about April 8, 2009 (the "Administrative
Order"), Milstream Energy, LLC ("Milstream"), engineering consultant to the Debtors and
Debtors in Possession ("Debtors"), hereby submits its First Monthly Application for
Compensation and for Reimbursement of
i The Debtors in these cases, along with the last four digits of each ofthe Debtors' federal tax identification
number, are: Pacific Energy Resources Ltd. (3442); Petrocal Acquisition Corp. (6249); Pacific Energy Alaska
Holdings, LLC (tax J.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
mailng address for all of
the Debtors is 111 W. Ocean Boulevard, Suite 1240, Long Beach, CA 90802.
and reimbursement of
..
$91.70 (100% of
for the period March 9, 2009 through March 31,2009 (the "Interim Period"). In support of
Baclround
1. On March 9, 2009 (the "Petition Date"), the Debtors fied voluntar
petitions for relief under chapter i i of the Banuptcy Code. The Debtors continue in possession
of their properties and continues to operate and manage their business as debtors in possession
pursuant to sections 1107(a) and 1108 of the Bankruptcy Code. A Committee of
Unsecured
Creditors ("Committee") was appointed on or about March 19,2009. No trustee or examiner has
been appointed in the Debtors' chapter 11 cases.
2. The Cour has jurisdiction over this matter pursuant to 28 V.S.C. 157
and 1334. This is a core proceeding pursuant to 28 V.S.C. 157(b)(2).
3. On or about April
The Administrative Order provides, among other things, that a Professional may submit monthy
fee applications. Uno objections are made within twenty (20) days after service of
the monthly
the
fee application the Debtors are authorized to pay the Professional eighty percent (80%) of
period ending May 31, 2009, at three-month intervals, each Professional shall file and serve an
interim application for allowance of
period. All fees and expenses paid are on an interim basis until final allowance by the Cour.
4. The retention of Milstream, as engineering consultant to the Debtors, was
approved effective as of
Milstream Energy, LLC as Consultant Nunc Pro Tunc to the Petition Date," entered on or about
May 15, 2009 (the "Retention Order"). The Retention Order authorized Milstream to be
compensated on an hourly basis and to be reimbursed for actual and necessar out-of-pocket
expenses, along with certain sales transaction fees, equity investment fees, ,and termination fees.
any source other than the Debtors for services rendered or to be rendered in any capacity
whatsoever in connection with the matters covered by this Application. There is no agreement or
understanding between Milstream and any other person for the sharing of compensation to be
received for services rendered in this case. Milstream has received payments from the Debtors
during the year prior to the Petition Date in the amount of $137,850.00, in connection with the
preparation of engineering reserve reports and preparation for asset sale efforts. Milstream was
68773-002\DOCS_DE: 148984. 1
owed $20,550.00 as of
the Petition Date for engineering consulting services but the claim for
Fee Statements
7. The fee statements for the Interim Period are attached hereto as Exhibit A..
These statements contain daily time logs describing the time spent by Milstream during the
Interim Period. To the best of
the Bankptcy Code, the Banptcy Rules and the Administrative Order.
Milstream charges for its professional services are based upon the time, nature, extent and value
of such services and the cost of comparable services.
Actual and Necessarv EXDenses
principal and practicing engineer, Mark A. Clemans. The services provided for the Interim
Period in connection with preparng the anual reserve reports for the Debtor's year-end 2008
filing of
reserves and cash-flows to regulatory bodies in the U.S. and Canada. These reports,
along with the related engineering and financial data, were used in the preparation of detailed
marketing material and valuations for the debtor's asset disposition process. Detailed daily
reports describing all services are shown in Exhibit A.
Valuation of Services
10. Milsteam expended a total
representation of
. Naine.~.Professional , ',IndiVidl
i'ositionofthe Applicant, ,
Numbero'ears in that
Hourly.
Diliiig
Total
Hours Biled
Postion/PriorRelevant
Experience,ear of Obtaining LicenSe to Area of Practice,
Rate,
(IIcltding'
Changes)
$300.00
111.50
Ex ei1se.
Professional Engineer; Active TX
Licensc #91254; Industry
$33,450.00
experience 22 years
11. The natue of work performed by Milstream is fully set forth in Exhibit A
attached hereto. The fees are for Milstream's normal hourly rates for work of
this character.
The reasonable value of the services rendered by Milstream for the Debtors during the Interim
Period is $33,450.00.
12. In accordance with the factors enumerated in section 330 of
the
Banptcy Code, it is respectflly submitted that the amount requested by Milstream is fair and
reasonable given (a) the complexity of
the case, (b) the time expended, (c) the nature and extent
of the services rendered, (d) the value of such services, and ( e) the costs of comparable services.
Moreover, Milstream has reviewed the reqnirements of DeL. Bank. LR 2016-2 and the
Administrative Order and believes that this Application complies with such Rule and Order.
the amount of$33,450.00 and actual and necessar expenses in the amount of$91.70 for a total
allowance of$33,541.70, and payment of $26,760.00 (80% of
By ~.~
MILLSTREAM ENERGY, LLC
Mark A. Clemans, Sole Owner
68773-002\DOCS_DE: 148984. I
VERIFICATION
Mark A. Clemans, after being duly sworn according to law, deposes and says:
a) I am the sole owner and manager of
("Milstream").
b) I am thoroughly familar with the work performed on behalf of the
Debtors by Milstream.
c) I have reviewed the foregoing Application and the facts set forth therein
are true and correct to the best of my knowledge, information and belief. Moreover, I have
reviewed DeL. Ban. LR 2016-2 and the Administrative Order entered on or about April
8,
2009, and submit that the Application substantially complies with such Rule and Order.
~.~
Mark A. Clemans SWORN AND SUBSCRIBED
before me thi~~ day of -1~'(
, 2009.
JEFERY F. CARSON
Notary puiiiiC, Slale 01 Texa
My COlll'isiDn exIre
lic
68773-Q02\DOCS_DE: 148984. i
INVOICE
PACIFIC ENERGY RESOURCES
INVOICE: 5 DATE: JUNE 3, 2009
EIN: 26-4064753
FOR: ENGINEERING CONSULTING FEES
DESCRIPTION
HOURS
RATE
AMOUNT
111.50
$300.00
$33,450.00
$91.70
$33,541.70
$26,760.00
$91.70
$26,851.70
Wiring Instructions:
First Receiving Bank: Southwest Corporate FCU 7920 Beltline Rd
TOTAL
US$26,851.70
l~A_~
Signed: s/: Mark A. Clemans
Time Sheet
300.00
;Pate
Hou-HO Hou-HO
Discussion with D&M on Probable/Possible reserve categorization & treatlent
flours'
i:atlon'
pescrlPtln
9-Mar-09 9-Mar-09
Prepare reserve summary tables from D&M and NSAI reports
0.8 4,2
240.00 1,260,00
1.0
Phone call and follow-up em ail
Phone call and discussion on D&M reserve categorization and rport formats '
discussions with NSAI on Beta reserve report format and database format
1.5
1.0
12-Mar-09
Hou-Dntwn Hou-Dntwn
Update AK well information status for Lazard 1M
Hou-HO Hou-HO Hou-HO Hou-HO Hou-HO Hou-HO Hou-HO Hou-HO Hou-HO Hou-HO Hou-HO Hou-HO
Hou-HO Hou-HO Hou-HO Hou-HO Hou-HO
Meeting and discussion with Albrecht on Beta valuation and confirm results
13-Mar-09
Calls w/ AK office on 1M, review 1M calls w/ Tim Torres Phone call and discussion with PEC AK Operations management on well/production status and project AFE costs Phone call and discussion with Silverpoint engineer on AK sales process & 1M
Call with D&M and reserve report items Call with PEC Management and advise on technical materials for Chinese presentations
15-Mar-09
0,3 1,3
16-Mar-09
2.8
1.2 1.0
Review preliminary D&M report format and edit Conference call wI ZolFo on AK Operating strategies and model representation of such Call with PEC Accounting on N-51-101 Disclosure preparation
Work with D&M on AK reserve report materials (graphs/plots, one-liner summaries) Outline and discuss with D&M 100% Wi sensitivity reserve case for AK non-operated properties as requested by PEC Management
Finalize comments on AK 1M and review with Lazard over the phone
17-Mar-09
1.0 2.4
18-Mar-09
2.9 1.6
Prepare biography and related materIals for Chapter 11 process, presented such to PSZJ
Phone cali and discussion with D&M Management of reserve database errors and time
19-Mar-D9
2.0
600,00
line to fix
20-Mar-09
1.8
Review revised D&M reserve runs for AK on the Cnd Forecasted price case
0,8
Conference call with PEC CFO & staff on reserve report disclosure forms
21-Mar,09
1,5
Review revised D&M reserve runs for AK on the SEC (Constant) price case
Detailed review of revised D&M Strip case preliminary reserve report
22-Mar-09
Additional review and comments on Lazard 1M and well status lists, correspondence with AK Management
Start AK Operated strategy outline and value summary for ZolFo
23-Mar-09
Hou-HO Hou-HO
2.0
Hou-HO
600,00
Continue work on AK operated strategy summary and analyses, follow-up call with Zolfo
Final reserve report reviews, check hard-copy summaries against Ph D Win database model output Conference call with PEC Management, Zolfo, & Lazardon sales/marketing process
N-51-101 Acctg Disclosure form preparation, calls on such with PEC CFO & staff, extract material from reserve reports for such
24-Mar-09
3,3
0,8
975.00 225.00
2,850,00
Hou-HO
Hou-HO Hou-HO
N-51-101 Acctg Disclosure form preparation
25-Mar-09
9,5
26-Mar-09
8.5
2,550.00
N-51-101 Acctg Disclosure form preparation" calls with PECAccounting staff
27-Mar-09
7.5
2,250,00
600,00
Hou-HO
N-51-101 Acctg Disclosure form preparation
28-Mar-09
2,0
29-Mar-09
Hou-HO
N 51-101 Acctg Disclosure form preparation
3.5
1,050.00
Hou-HO
Prepare final reserve summaries and notes for PEC Board Meeting
30-Mar-09 30-Mar-09
Hou-HO Hou-HO
9.5 3.0
Prepare for and participate in PEC Board Reserve Committee and then Board conference calls, presented reserve reports
31-Mar-09
12.0
..
,Expen~e Re~ord
Pr1~ifi c, E.i:!'_rm
Mar-09
I."
AmoJnt
Reservoir
Description
EnglneeingConsultant & Asset Sales Firms
Office to Downtown & return ,Downtown parki ng Office to Downtown & return Downtown parking (near Albre.chts office)
, Mileage Parking
" M.ileage.,
Par.ki ng.,.
$12.()
$91.70
Total
713-.224-6025
"s
17:54:2'
Transacti on j: :'-35
~t1 5404
~
Tota I Fee $ g. 00
VISA $ 9.00-'
XXXXXXXXXXXX3364
Change Due $ o. 00
Thank you Have a Great Day
00000035 003928
APPROUED
CUSTOMER COP'!
In re: ) Chapter 11
)
Debtors. )
) (Jointly Administered)
and debtors in possession in the above-captued case (the "Debtors"), has filed its Monthly
Application for Compensation and Reimbursement of Expenses of Milstream Energy, LLC as
Engineering Consultant to the Debtors and Debtors in Possession, for the Period from March
9, 2009 through March 31, 2009, seeking compensation for services in the amount of
$33,450.00 and reimbursement of costs incured in the amount of $91.70 (the "Application").
PLEASE TAK FURTHR NOTICE that objections, if any, to the Application must
be made in accordance with the Admnistrative Order Under 11 U.S.C. 105(a) and 331
are: Pacific Energy Resources Ltd. (3442); Petrocal Acquisition Corp. (6249); Pacific Energy Alaska Holdings,
LLC (tax J.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 mailng address for all of the Debtors is 1 I 1 W. Ocean Boulevard, Suite 1240, Long Beach, CA 90802.
that they are received not later than June 29, 2009, by: (a) the Debtors, (1) Pacific Energy
Resources, 111 W. Ocean Boulevard, Suite 1240, Long Beach, CA 90802, Attn: Gerry
Tywoniuk, Senior VP & CFO and (2) Zolfo Cooper, 1166 Sixth Avenue, 24th Floor, New York,
NY 10036, Attn: Scott W. Winn, Senior Managing Director; (b) counsel to the Debtors, (1)
Pachulski Stang Ziehl & Jones LLP, 919 North Market Street, 1 ih Floor, Wilmington, DE
19899-8705, Attn: Laura Davis Jones, Esq., Fax: 302-652-4400, e-mail: lionescqpszilaw.com
and (2) Pachulski Stang Ziehl & Jones LLP, 10100 Santa Monica Blvd., 11th Floor, Los Angeles,
Building, 844 N. King Street, Suite 2207, Lock Box 35, Wilmington, Delaware 19801, Attn:
Joseph McMahon, Esq.; and (d) counsel for the Official Committee of
CA 90067, Attn: Katherine C. Piper, Esq., Fax: (310) 734-3173, e-mail: kpipercqsteptoe.com
and (2) Pepper Hamilton LLP, Hercules Plaza, Ste 5100, 1313 N. Market Street, Wilmington,
convenience of the Bankuptcy Court. Only those objections made in writing and timely fied
and received in accordance with the Administrative Order and the procedures described herein
no objection to the Application is timely filed, served and received by the Objection Deadline, the
Applicant may be paid an amount equal to the lesser of (1) 80 percent of the fees and 100 percent
of expenses requested in the Application or (ii) 80 percent of the fees and 100 percent of the
expenses not subject to an objection without the need for further order ofthe Bankruptcy Court.
2436)
Kathleen P. Makowski (DE Bar No. 3648) 919 North Market Street, 1 ih Floor P.O. Box 8705 Wilmington, DE 19899-8705
Telephone: 302/652-4100
Facsimile: 310/652-4400
Email: lionesripszilaw.com
rsaunderscqpszi law.com
i oneilripszi law. com
(Jointly Administered)
AFFIDAVIT OF SERVICE
Debtors in the above-captioned action, and that on the 8th day of June, 2009 she caused a copy of
the following document(s) to be served upon the paries on the attached service lists in the
maner indicated:
Notice and Fee Application of
Milstream Energy, LLC as Engineering Consultant for the Debtors for the Period March 9,2009 through March 3t2009
~~jJ-~
Kat leen Forte Finlayso
MARY E. CORCORA NOTARY PUBLIC STATE OF DELAWAR
.. commissio expires Nov. 4, 20
the Debtors is 111 W.
the Debtors' federal tax each of 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 mailng address for all of
i The Debtors in these cases, along with the last four digits of
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
(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
1313 Market Street Wilmington, DE 19899 First Class Mail (Debtors) Mr. Gerry Tywoniuk Senior Vice President & CFO Pacific Energy Resources 111 We. Ocean Boulevard, Ste 1240 Long Beach, CA 90802
Interoffice Pouch to Los Angeles (Counsel for Debtors) Robert M. Saunders, Esquire Ira D. Kharasch, Esquire Scotta E. McFarland, Esquire Pachulski Stang Ziehl & Jones LLP
10100 Santa Monica Blvd., 11 th Floor
N ew York, NY 10026
Wilmington, DE 19801
Hand Delivery (Copy Service)
Parcels, Inc.
Unsecured Creditors)
Wilmington, DE 19801
Joshua Taylor, Esquire Steptoe & Johnson LLP 1330 Connecticut Avenue NW Washington, DC 20036
Unsecured Creditors)
Robbin Itkin, Esquire Katherine Piper, Esquire Kelly Frazier, Esquire Steptoe & Johnson LLP
2121 Avenue of