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Contract Reviews | Watson Millican & Co.
Watson Millican and Company - Consultants • Engineers • Experts
Pearson Watson Millican and Company - Consultants • Engineers • Experts

Contract Reviews

Refinery and Chemical Plant Inter-Plant Contract Dispute

Assessed the financial magnitude and contract basis for numerous claims of non-compliance and non-performance with contracts between an adjacent refinery and chemical plant.  Issues included feedstock transfers, pricing, expense allocations, material balance, and reporting.

Audit of Full Well Stream Gas, NGL and Condensate Allocations

Determined the allocation of condensate between lease condensate and plant processing products.  Condensate was transported in a “full well stream” gathering system and separated at central compression facilities and NGL recovery plants.  Considered results from test separation at the lease, and corrected allocation of condensate and residue gas based on a “pentanes plus” allocation method.

Refinery and Integrated Gasification Combined Cycle (IGCC) Inter-Plant Contract Dispute

Assessed the financial magnitude and contract basis for claim of uneconomic pricing of petroleum coke as a fuel to a integrated gasification combined cycle (IGCC) plant.  The refinery company who was the supplier of the petroleum coke was attempting to adjust the contract price terms for the coke with the owner of the IGCC.

Audit of Gas Contract

Conducted an audit of the revenue settlement of natural gas liquids and residue gas per the terms of a gas processing agreement.  Investigated causes of reduced product yields, and reviewed compressor operation, fuel consumption, and product and fuel allocation procedures.

Independent EPC Contract Reviews

Prepared an independent review of an EPC contract for a large combined cycle power plant which included a review of the technical scope definition, assessment of liquidated damages, and contract administration and milestone payment procedures.


Our strong operating background, coupled with significant commercial experience, gives Watson Millican & Co. a unique perspective that complements traditional accounting reviews.

Our consultants have advised clients on the proper interpretation and application of natural gas contract terms. We have assisted clients with audits of natural gas sales and processing contracts and evaluated complex product price hedging agreements.

We have also applied our technical and commercial know-how to address interplant and affiliate volume, transfer pricing, and expense allocation issues related to crude oil and natural gas production, refining and petrochemical manufacturing, and natural gas gathering and processing.