Our founder, John Peterson, has over thirty-five years of experience in negotiating and administering industrial gas product supply agreements. He managed the merchant and on-site sales organizations on the U.S. Gulf Coast and in the Western United States for the world’s largest industrial gas supplier. He also led the business development and negotiation teams in the US and Western Canada for some of the largest on-site projects, both atmospheric gas supply and HyCO, executed by his company.
During his career, John served as an expert witness, corporate representative and/or primary fact witness for numerous dispute resolutions, mediations and arbitrations totaling over $350MM in settlement exposure. He is also experienced in bankruptcy proceedings, including creditor’s committee participation, and has also testified in bankruptcy court as an expert witness.
The nature of large industrial gas contracts can be quite complex. In many instances, the Industrial Gas Supplier (IGS) has expended significant capital to meet the client’s needs (in some cases constructing a plant on the client’s facility) and has required a significant contract duration to recover the investment. It’s perfectly reasonable, and results in a lower price to the client and a reasonable long-term return for the IGS. Clearly, a win-win. What could possibly go wrong?
Unfortunately, over time, long term agreements can get out of whack. Additionally, despite the best efforts of both parties, many potential third-party problems are not foreseeable, or, out of the reasonable control of either the client or the IGS. When such issues happen, use Industrial Gas Commercial Advisors’ (IGCA’s) expert witness services and dispute resolution services to support such negotiations with the IGS.
And, when such negotiations do not lead to a mutually acceptable outcome, use IGCA dispute resolution services and expert witness services to obtain a favorable outcome from mediation and/or arbitration.
In any agreement, pricing tends to be the key variable negotiated by the parties. That’s no exception for a long term IGS product supply agreement. However, the competitiveness of the price over time can be a challenging issue to address, especially when the impact of key variable costs, such as natural gas or power, are passed through during the term of the agreement. Use IGCA’s expert witness and dispute resolution services to address issues which, over time, may become contentious such as:
· Pricing escalation and renegotiation of the pricing escalation formula
· The application of automatic contract extension or term extension clauses
· The triggering of end-of-agreement provisions affecting extension term or pricing
· The ability to seek third party IGS options as the client's industrial gas needs change or grow