Second Interim Application of Gordon, Arata, Mccollam,
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Transcript of Second Interim Application of Gordon, Arata, Mccollam,
Page 1 of 16 SECOND INTERIM APPLICATION FOR COMPENSATION OF GORDON, ARATA, MCCOLLAM, DUPLANTIS & EAGAN, LLC
UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF LOUISIANA
IN RE: VIRGIN OFFSHORE USA, INC., DEBTOR
CASE NO. 11-13028 CHAPTER 11 JUDGE ELIZABETH W. MAGNER
SECOND INTERIM APPLICATION OF GORDON, ARATA, MCCOLLAM,
DUPLANTIS & EAGAN, LLC FOR ALLOWANCE OF FEES AND EXPENSES
NOW INTO COURT, through undersigned counsel, comes the law firm of Gordon,
Arata, McCollam, Duplantis & Eagan, LLC (“Applicant”), attorneys for the chapter 11 trustee,
Gerald H. Schiff (“Schiff” or the “Trustee”), who submits this Second Interim Application for
Allowance of Compensation and for Reimbursement of Expenses (this “Second Interim
Application”). In support, Applicant represents:
JURISDICTION, VENUE, AND RELATED MATTERS
1. Jurisdiction of this court is based upon, inter alia, 28 U.S.C. §§ 157, and 1334,
and 11 U.S.C. §§ 105, 365, 541, and 1108. This is a “core” proceeding pursuant to 28 U.S.C. §
157(b)(2)(A) and (O), over which this court has authority to conduct a hearing and to enter a
final order. Venue is proper pursuant to 28 U.S.C. §§ 1408 and 1409.
2. On September 16, 2011, an involuntary petition was filed by Precision Drilling
Company, LP, Dynamic Energy Services, LLC and Tanner Services, LLC and subsequently
consented to by Virgin Offshore U.S.A., Inc. (“Offshore”) on October 6, 2011. The order for
relief was entered on October 12, 2011 (the “Order for Relief”). (R. at 24.)
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Page 2 of 16 SECOND INTERIM APPLICATION FOR COMPENSATION OF GORDON, ARATA, MCCOLLAM, DUPLANTIS & EAGAN, LLC
3. On October 6, 2011, Offshore filed a Motion to Appoint Chapter 11 Trustee (the
“Motion to Appoint Trustee”). (R. at 21.) On October 11, 2011, this Court granted the Motion
to Appoint Trustee. (R. at 23.)
4. The Office of the United State Trustee nominated Gerald H. Schiff as the Trustee
on October 13, 2011, and moved for an order approving the appointment of Gerald H. Schiff as
the Trustee. (R. at 25.) On October 14, 2011, this Court entered an Order approving the
appointment of Gerald H. Schiff as chapter 11 trustee of the Offshore estate (the “Appointment
Order”). (R. at 29.)
5. As Trustee, Schiff is vested with the exclusive ability to exercise control over
property of the estate and manage and operate the business of Offshore pursuant to 11 U.S.C. §§
541, 1107, and 1108.
6. On October 17, 2011, the Trustee moved to employ Applicant as his legal
counsel. (R. at 33.) This Court on January 11, 2012 approved the application to employ
Applicant on a final basis. (R. at 131.)
INTRODUCTION
7. As this Court is aware, prior to the filing of this bankruptcy case and the
appointment of the Trustee, Offshore’s business operations and finances were significantly
influenced by the bankruptcy proceedings of its sole shareholder, Virgin Oil Co., Inc (“Virgin
Oil”).1 The financial and operational structure of Virgin Oil and Offshore were inextricably
intertwined resulting in numerous disputes between the parties with respect to the amounts owed
1 On June 25, 2009, an involuntary Chapter 7 case was filed against Virgin Oil commencing bankruptcy Case No. 09-11899, and eventually converted to Chapter 11 on August 20, 2010. The Official Committee of Unsecured Creditors of the Virgin Oil Estate (the “Committee”) and CIT Capital USA, Inc. (“CIT”) filed a Second Amended Chapter 11 Plan dated as of August 26, 2011 (the “Virgin Oil Plan”) and this court confirmed the Virgin Oil Plan, as modified and supplemented, by order dated December 13, 2011.
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to one another, the ownership interest in certain oil and gas properties, and the future operations
on such properties.2 The Offshore estate was also faced with the daunting task of addressing
certain plug and abandonment (“P&A”) responsibilities of Offshore and Virgin Oil that had been
significantly delayed for months, if not years in some instances, and numerous noncompliance
notices from federal agencies with no clear directive from either side on how to proceed and who
should be responsible for initiating the P&A work requirements.
8. From the Trustee and Trustee’s counsel’s viewpoint, these disputes resulted in a
very litigious Virgin Oil bankruptcy case that focused more on the resolution of the disputes
rather than addressing the many issues that led to the actual disputes. These disputes coupled
with Offshore’s ineffective business model (Offshore was never set-up to generate revenue and
solely operated on a cash through put basis) significantly contributed to the filing of Offshore’s
bankruptcy case. At the time of the filing of this case, the Committee and CIT were in the midst
of extensive negotiations in an effort to address the disputes between the Virgin Oil estate and
Offshore and obtain all parties’ consent to the terms of Virgin Oil’s Second Amended Plan. The
prior negotiations led to a proposed settlement term sheet that was memorialized in the filing of
certain modifications to the Second Amended Plan on or about October 5, 2011 (the “Offshore
Settlement”). Upon his appointment, the Trustee evaluated the terms and conditions of the
Offshore Settlement and advised the Offshore estate and this Court as to whether or not the
Offshore Settlement was fair and equitable and in the best interest of the Offshore creditors. On
2 Currently, the only producing properties in which Virgin Oil and Offshore hold an interest are the Louisiana State Oil and Gas Lease SL 18165, Empire Field, Plaquemines Parish Louisiana (referred to as the “Empire Lease”) and the Federal Oil and Gas Lease referred to as Block 153, Ship Shoal, bearing Serial Number OCS-G18011 (referred to as “Ship Shoal”). Offshore obtained Court approval to assume these and other unexpired oil and gas leases and has paid the cure amounts pursuant to the Assumption Order. (R. at 209).
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January 5, 2012, this Court entered an order approving the terms of the Offshore Settlement. (R.
at 126).
9. Upon obtaining Court approval of the Offshore Settlement, the Trustee worked
diligently with the Committee and the Virgin Oil Plan Trust to implement the settlement. As of
the date of this Second Interim Application, Applicant can report that the primary terms of the
Offshore Settlement have been implemented, including (i) the execution of the Decommissioning
Term Sheet with the Bureau of Ocean Energy Management (“BOEM”) by all parties; (ii) the
compromise and partial distributions to certain lien claimants in the Empire Lease that
commenced Adversary Proceeding No. 11-01111 (the “Lien Adversary”); (iii) the execution of
the Contract Operator Agreement with Whistler Energy, LLC, trustee of the Virgin Oil Plan
Trust; and (iv) the extensive work necessary to address Offshore’s P&A responsibilities in
connection with its expired leases and numerous “incidents of noncompliance” issued by the
Bureau of Safety and Environmental Enforcement (“BSEE”). Applicant submits that its counsel
played a key role in reviewing, negotiating, drafting, and resolving many of these issues.
10. The Trustee and Applicant also focused on preserving the Offshore estate and
submitted a plan that provides for the best opportunity to pay creditors with allowed claims. In
connection therewith, Applicant was required to negotiate, draft, review, research and discuss a
wide range of legal issues related to, among other things Offshore’s (i) seismic license
agreements (and transfers to the Oil Plan Trust), (ii) record title ownership in oil and gas leases
jointly owned by Virgin Oil and Offshore (and the respective ownership percentages for
purposes of billing lease operating expenses), (iii) investor agreements (and the obligations
described therein), (iv) joint operating agreements with the Oil Plan Trust (and the specific terms
that were not negotiated pursuant to the Offshore Settlement), (v) the value of Offshore’s
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producing oil and gas assets, and (vii) state and federal regulatory filings. This process proved
more difficult than expected as the Oil Plan Trust and Offshore differed in their interpretations of
the Offshore Settlement requirements and the historical context of the relationship between the
entities. As a result, much effort and time were required to reach amicable resolutions to the
differences while insuring that the Trustee and the estate’s interests were protected. Applicant
submits that many of these issues have been resolved; however, several remain in connection
with the P&A work that will continue to be addressed as necessary. What is clear is that the Oil
Plan Trust and Offshore estate are moving forward with completing the much delayed P&A
work.
11. In the meantime, Applicant has assisted the Trustee in developing, drafting and
filing a disclosure statement and plan. As of the filing of this Second Interim Application,
Applicant has amended the disclosure statement and plan, and a hearing on the approval of the
amended disclosure statement is set for April 18, 2013.3 Applicant submits that the Amended
Disclosure Statement contains adequate information and should be approved by this Court, and
that the Amended Plan is in the best interest of creditors.
12. For the reasons described herein, Applicant believes that the fees and expenses
requested are reasonable given (i) the quality of work performed, (ii) the progress obtained, (iii)
the payments made to creditors, and (iv) the submittal of an Amended Disclosure Statement and
Plan.
3 On March 28, 2013, the Trustee filed the First Amended Disclosure Statement In Support Of Chapter 11 Plan Of Reorganization Dated March 28, 2013 Submitted By Gerald H. Schiff, Chapter 11 Trustee For The Estate Of Virgin Offshore, USA, Inc. (the “Amended Disclosure Statement”) (R. at 401) and First Amended Chapter 11 Plan Of Reorganization Dated March 28, 2013 Submitted By Gerald H. Schiff, Chapter 11 Trustee For The Estate Of Virgin Offshore, USA, Inc. (the “Amended Plan”) (R. at 402).
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SERVICES PERFORMED BY APPLICANT
13. The work done by Applicant during the Second Application Period (defined
below) and the First Application Period (defined below) has been significant and considerable.
The time worked in the Second Application Period is described chronologically and generally as
follows:
a. Attended status conferences and hearings October 22nd and 23rd regarding pending fee applications (Trustee and Applicant on 23rd), and as well provided the Court and interested parties with an overall status report concerning the status of the estate, the operations, and progress on commencing the P&A work. Obtained consent to entry of order regarding pending applications of counsel and Trustee and a continued conference for update on Virgin Oil Plan Trust development opportunities until December 10, 2012.
b. Continued extensive review and research of Offshore records maintained by and with the BOEM, the BSEE , the Louisiana Department of Natural Resources and the related Louisiana Parishes to update, maintain and address Offshore’s interests and obligations in connection with operating oil and gas assets and implementing the P&A process. Work with Whistler Energy, LLC (“Whistler”) to negotiate, revise, draft, finalize and execute all master service agreements (“MSAs”) with chosen P&A contractors, including review of relevant insurance requirements. Participated in numerous meetings and correspondence related to P&A Plan and work to update federal agencies, prepare permits, review MSA’s, file permits, address insurance requirements, review contracts and execute all filings. Negotiations and daily work with Whistler and the Virgin Oil Plan Trust special counsel to finalize implement contract operator agreement, interpret and implement the P&A Term sheet, review and research RLI bond obligations and the bond reduction process, understand the property specific requirements of the bonds and related accounts pledged to secure the RLI bonds, and extensive discussions regarding maintaining the accuracy of the process. Obtained OSFR coverage for HI 198 work as required for permit approval by BOEM/BSEE. Addressed P&A work stoppage by Chet Morrison and communicated same to Court. Working to finalize initial bond reduction submittals and expedite recommencement of P&A work.
c. Addressed daily issues in connection with operating offshore oil and gas
properties and maintaining necessary state and federal regulatory filings. Reviewed and analyzed a wide range of documents, including oil and gas assignments, non-compliance regulatory notices from the US Coast Guard, division of interest forms for purpose of JIB’s, management service agreements, critical vendor agreements, filings related to expired and unexpired oil and gas
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leases, P&A scope of work and related escrow agreements and all financials relating to Offshore’s pre-petition operations.
d. Continued working with Patrick Gros, CPA to assist with reviewing Offshore’s
books and filed 2010, 2011 and 2012 federal and state tax returns. Worked with P. Gros to assess write-offs for financial statements related to previous interpretations of status of creditors and expense items related to Virgin Oil and effect of Plan treatment of debt. Prepared, reviewed and filed monthly operating reports and paid quarterly fees to US Trustee Office.
e. Daily communications with Offshore staff, namely Lori Montecino, regarding
operational issues, monthly operation costs, JIB billing and collection procedures, outstanding invoices, office procedures and regulatory filings/compliance. Prepared and sent JIBs for all months and attempted to reconcile payments. Implemented procedure for handling invoices, INCs, P&A permitting review and related operational concerns moving forward after closing of office. Numerous correspondence and negotiations with interested parties to inform of direction of case, ownership interest in assets and related requirements. Addressed insurance coverage issues for P&A work, updated all insurance schedules and necessary coverage requirements that were previously incorrect. Maintained document retention policy due to pending audits and litigation.
f. Reviewed, researched and responded to inquiries regarding proposals to acquire
assets and/or, invest in operations. Drafted confidentiality agreements and executed same with interested parties to begin process of exchanging information.
g. Continued servicing and satisfaction of Century Exploration (Ship Shoal operator)
post petition arrearage. Addressed pre-petition arrearage in connection with assumption of JOA with Century. Initial draft and negotiation of assumption motion. Reviewed and researched P&A escrow requirements for Ship Shoal. Communications with Century counsel regarding P&A escrow and assumption. Determined assumption in connection with submittal of plan was in best interest of the estate.
h. Addressed and worked with Whistler in connection with change of operatorship at
Empire and transfer of pledged certificate of deposit. Extensive work to address related operational issues at Empire and renewal of surface leases. Numerous conferences and meetings to address payments between entities and propose development opportunities. Continued to work to implement terms of settlement, including continued discussions of bond renewal premiums, insurance payments and federal and state regulatory filings. Participated in annual inspection meeting with BSEE in Lake Charles in March 2013 with Whistler to address INCs, nav-aids and discuss scope of the P&A work.
i. Worked to address Lien Adversary and advise Court of potential settlement. Extensive work to negotiate settlement and coordinate dismissal of appeals and
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Lien Adversary. Drafted, filed and obtained court approval of Lien Adversary compromise. Continued interim distributions to lien claimants from Empire proceeds (as reflected in the monthly operating reports) per the Court approved settlement.
j. Multiple correspondence and meetings with special counsel to address discovery issues in D&O suit. Attention to discovery plan.
k. Extensive work in connection with post petition termination of seismic license by
TGS-NOPEC Geophysical Company, L.P. (“TGSN”). Researched seismic license assumption issues and bankruptcy related requirements. Moved for expeditious assumption of TGSN license and communications with counsel regarding continued hearing. Drafted Reply to TGSN opposition and participated in November 15, 2012 hearing. Obtained court approval of assumption and participated in December 6, 2012 stay pending appeal hearing. Obtained court denial of stay. Prepare appellant designations. Prepared appeal briefs and related research in connection with briefing. Filed appeal briefs.
l. Worked with Debtor’s employee and Virgin Oil Plan Trust on a daily basis to
answer questions relating to tax issues, accounting problems, operational problems and procedures, investigatory analyses, prior assignments and letter agreements with investors, regulatory questions, restructuring proposals, strategy and planning, sales tax audit, valuation of assets, changes in Offshore’s business model, judgments and associated writs and/or seizures, and discussions/negotiations and prior course of dealings with Offshore investors and Virgin Oil.
m. Participated in December 10, 2012 status conference and agreed to expedited
filing of plan and disclosure statement. Extensive work on claims analysis and asset review. Developed operating budget. Prepared disclosure statement and plan and submitted for Court approval in accordance with January 31, 2013 deadline. Participated in February 4th status conference and obtained hearing date on approval of disclosure statement and service procedures. Drafted notice of disclosure statement filing and served creditors. Reviewed objections to disclosure statement and addressed concerns with Trustee in advance of March 6 approval hearing.
FEES AND EXPENSES REQUESTED
14. This Second Interim Application is the second application for approval of
compensation and expenses. Applicant requests fees of $132,360.00 and expenses of $7,868.90
for a total of $140,228.90 incurred by Applicant during the period of time from October 1, 2012
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Page 9 of 16 SECOND INTERIM APPLICATION FOR COMPENSATION OF GORDON, ARATA, MCCOLLAM, DUPLANTIS & EAGAN, LLC
through February 28, 2013 (the “Second Application Period”).4 Applicant requests that the fees
and reimbursable costs requested herein ($140,228.90) be allowed as an administrative expense,
and that such fees and costs be paid by the Trustee from funds held by the Trustee. Applicant
represents that sufficient cash is available to pay the fees and costs requested herein.
15. Exhibit A, which is attached hereto, contains (i) an itemized description of the
services performed, (ii) the date the services were performed, (iii) the amount of time spent
performing those services, (iv) the identity of the person performing the services during the
Second Application Period, and (v) a listing of all expenses incurred during the Second
Application Period. Given the sheer volume of time required, Applicant requests waiver of any
project billing requirement usually imposed by this Court.
16. During the Second Application Period, Applicant incurred expenses in connection
with its representation of the Trustee totaling $7,868.90. These expenses are summarized in the
billing statement. Applicant bills clients at $0.10 per page for photocopies and Applicant only
charged for copy expenses when the copy job exceeded a total of $15.00. Additionally, the
expenses incurred include the actual cost of automated research and courier service. Mileage is
calculated at the rate accorded by the Internal Revenue Service. Long distance charges represent
actual cost of calls. Conference call charges represent actual cost of conference calls. Fax and
telecopies are charged at $0.75 per page. Automated research charges represent actual cost
charged to Applicant and Westlaw research was only charged when the job generated charges
over $20.00 per job. Applicant submits that all effort was made to keep out-of-pocket expenses
4 Previously, this Court awarded GAMDE fees of $436,228.50 and expenses of $31,975.57 (total of $468,204.07) incurred by GAMDE during the period of time from October 1, 2011 through September 28, 2012 (the “First Application Period”). (R. at 268).
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at a minimum and that such expenses are reasonable based on the services provided heretofore
by the Applicant.
17. All members of Applicant involved in this case have made a deliberate effort to
avoid any unnecessary duplication of work. Applicant believes that the billings may reflect that
several attorneys participated in certain hearings and discussions; however, the participation of
all counsel was necessary and beneficial, and no unnecessary duplication has occurred.
18. Applicant has not shared or agreed to share with any other entity or law firm the
compensation received, allowance of which is requested herein, except to the extent that the
funds received may be distributed to partners of Applicant. All professional services for which
allowance is requested herein were performed by Applicant, its attorneys, and its staff members
for and on behalf of the Trustee and not on behalf of any other entity or party in interest.
Applicant received no retainer prior to retention by the Trustee.
19. “The Fifth Circuit uses the ‘lodestar’ method to calculate attorneys’ fees.”5 The
lodestar is the number of hours reasonably expended multiplied by “the prevailing hourly rate in
the community for similar work.”6 The request for fees is then adjusted upward or downward
based on the factors identified in Johnson v. Ga. Highway Express, Inc.7 A detailed description
of the application of each of these factors relevant to this Second Interim Application is set forth
below.
A. The Time and Labor Expended – The charge for Applicant’s services in this
case for the Second Application Period totals $132,360.00 and for out-of-pocket expenses of
5 Transamerican Natural Gas Corp. v. Zapata P’ship, Ltd. (In re Fender), 12 F.3d 480, 487 (5th Cir. 1994) (citation omitted).
6 Id.
7 488 F.2d. 714 (5th Cir. 1974).
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$7,868.90. The actual time billed, which Applicant submits is less than the actual time expended
by Applicant is set forth in detail in Exhibit A, attached hereto. During the Second Application
Period, the time expended by Applicant for legal services was commensurate with the factual
and legal issues involved in the representation of the Trustee.
B. Experience, Reputation and Ability – Professional services rendered in this case
have been performed by attorneys with broad experience and a high level of skill in the areas for
which they have been employed. Applicant submits that its attorneys, with varying levels of
experience and seniority, have been used effectively and efficiently to meet the requirement of
the tasks assigned. Moreover, Applicant’s expertise and experience, specifically in oil and gas
and transactional matters, has enabled this case to progress in as efficient a manner as possible to
the benefit of the estate and the creditors. The bulk of the work performed by attorneys has been
performed by, Louis M. Phillips, Cynthia A. Nicholson, C. Peck Hayne, Jr., Armistead M.
Long, Dana E. Dupre, Patrick (Rick) M. Shelby and James D. Rhorer. Any other attorney[s]
providing services to the Trustee on this case devoted minimal time, but maximum assistance
depending on the particular specialty of each attorney. Applicant submit that the fees for time
expended, and rates charged for such services are reasonable given the experience and special
knowledge of each attorney working on the case.
C. The Skills Required for Performance of Services – Applicant’s attorneys have
appeared before courts in this district and throughout Louisiana in bankruptcy cases on behalf of
debtors, creditors, trustees, and receivers for many years. Applicant believes and respectfully
submits that they are highly regarded in the areas of bankruptcy law, commercial law,
transactional law and oil and gas law. Applicant’s attorneys possess the experience, reputation,
and ability to merit an award of the requested compensation and reimbursement.
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D. The Novelty and Difficulty of Issues – This case is difficult from a legal
perspective, as it involves novel issues concerning the ability of a Trustee (i) to gain immediate
familiarity with Offshore’s business model and the operation of numerous oil and gas assets, (ii)
to assert the estate’s rights to funds held in suspense or otherwise resulting from numerous
disputes between related entities, (iii) to develop a working relationship with the Committee and
make every effort to proactively assess and respond to the propriety of a settlement between the
Virgin Oil and Offshore estates in a very short period of time, (iv) to create a process for
evaluating the competing positions of parties to the rights and interests in assets of the estate, (v)
to operate and coordinate Offshore’s on-going business operations, (vi) to assume responsibility
for Offshore’s significant environmental and safety compliance matters, and (vii) to develop and
propose a plan that is in the best interest of creditors.
E. The Customary Fees – Applicant has applied for allowance of compensation for
fees that reflect its billing rates charged to clients by Applicant and previously approved and/or
set by the Court. Applicant believes that its customary fees for services are equal to or below
those of other firms in the national bankruptcy community and within the range of fees approved
for attorneys of similar experience within the Louisiana Bankruptcy Courts. Where Applicant
has made changes to billing rates (firm wide) these changes are reflected in the time sheets
attached as Exhibit A.
F. The Amount Involved and the Results Obtained – This case required the
expenditure of substantial time and effort of Applicant given the extent and disarray of the
Offshore business affairs and Offshore Settlement as of the date of the Appointment Order. As
described above, significant work has also been required to implement the Offshore Settlement
and advance the P&A work. This work is an absolute pre-requisite for consideration of the
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Amended Plan and subsequent distributions, if any, to creditors. Applicant represents that the
time expended is commensurate with the size and complexity of Offshore’s assets (i.e. numerous
oil and gas leases), Offshore’s business model, the number of neglected compliance issues, and
the related legal issues involved in the case. Applicant believes its services were performed as
effectively and efficiently as possible and that the time expended is commensurate with the
issues and objectives involved (and the results ultimately obtained). Applicant submits that it
has been very successful in its efforts.
G. Preclusion from Other Employment – While Applicant was theoretically not
precluded from other employment during the time period of this application, the professionals
who have devoted time to these cases were prevented from working on other matters by the sheer
volume of work required just to keep up with daily issues, correspondence and emergencies.
H. Contingent Nature of Fees – These fees were contingent to the extent that all
fees due counsel in a pending bankruptcy proceeding are contingent upon the success of the case,
the availability of cash, review by the Office of the U.S. Trustees, and the approval of the Court.
Applicant submits that unencumbered cash will be more than sufficient to pay administrative
expense claims that will ultimately be approved on a final basis.
I. Time Limitations and Other Circumstances – From the outset of Applicant’s
employment, Applicant and the Trustee have been moving at an accelerated pace attempting to
familiarize themselves with the posture of the case, Offshore’s assets, debt structure, and
business affairs, the necessary evaluation of the Offshore Settlement, and all subsequent work
necessary to implement the settlement. This case has involved the usual filing deadlines for
motion practice (other than the deadlines imposed upon the Trustee in connection with the
disclosure statement and TGSN filings), but the issues involved generally required speedy
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analysis and response. Applicant has worked closely with counsel for Virgin Oil to reach and
effectuate the agreement set forth in the Offshore Settlement. Furthermore, objections to the
Trustee’s filings have been minimal.
J. The Undesirability of the Case – This case is not undesirable and this factor is
not an issue in this matter.
K. The Nature and Length of the Professional Relationship with the Client –
Applicant and Offshore had no pre-existing relationship prior to the Applicant’s employment.
L. Awards in Similar Cases – Applicant submits that an order of compensation on
the basis provided for is comparable to that awarded in similar cases in the Eastern District of
Louisiana and bankruptcy courts within Louisiana. In comparison to the fees and costs requested
by other parties-in-interest and their counsel and the fees expended in the related Virgin Oil
bankruptcy case, the fees and costs requested herein are fair and reasonable, and have resulted in
a demonstrable benefit to the estate. Particularly, rough calculation shows that the Applicant
fees and costs prayed for in this second interim application, covering approximately five (5)
months average a request for approximately $28,200 per month, including costs. At the same
time, the Trustee has made distributions to a number of secured creditors (including the
satisfaction of the Century post petition arrearage) while taking steps to negotiate and reduce the
potential claims against this estate. Applicant submits that its monthly fee amounts are
reasonable for the amount of work required and the results obtained.
20. Applicant submits that there is sufficient assets of the estate to pay the fees and
costs requested herein. The Trustee agrees with this perspective. Applicant submits that by
hearing upon this Second Interim Application the estate should have in excess of $750,000 in
unencumbered cash on hand in Offshore’s operating account. Further, the Trustee hopes to
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receive approximately $50,000—$100,000 per month for the next several months of
unencumbered income from its share of the Ship Shoal and Empire production. Given that the
Estate currently should have more than $800,000 in cash by hearing on this Second Interim
Application, Applicant submits that there are sufficient funds with which to pay Applicant’s fee
and cost requested herein. Applicant therefore requests that the fees and costs incurred during
the entire Second Application Period be approved and paid by the Trustee.
WHEREFORE, Applicant prays that, after due consideration, (i) an allowance be made
in the sum of $140,228.90, for services and expenses rendered by them for the Second
Application Period, representing $7,868.90 for expenses and $132,360.00 for attorney’s fees; (ii)
that the fees and costs requested herein be allowed as an administrative expense; (iii) that the
amounts as approved by the Court be paid immediately upon entry of order upon this application,
and (iv) for such other and further relief as is just.
GORDON, ARATA, MCCOLLAM, DUPLANTIS & EAGAN, LLC By: /s/ Patrick M. Shelby
Patrick (Rick) M. Shelby (La. Bar No. 31963) 201 St. Charles Avenue, 40th Floor New Orleans, Louisiana 70170-4000 Telephone: (504) 582-1111 Email: [email protected] - AND - Louis M. Phillips (La. Bar No. 10505) 301 Main Street, Suite 1600 Baton Rouge, LA 70825 Phone: (225) 381-9643 Email: [email protected] - AND -
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Page 16 of 16 SECOND INTERIM APPLICATION FOR COMPENSATION OF GORDON, ARATA, MCCOLLAM, DUPLANTIS & EAGAN, LLC
Armistead M. Long (La. Bar No. 33949)
GORDON, ARATA, MCCOLLAM, DUPLANTIS, & EAGAN, LLC 400 East Kaliste Saloom Road, Suite 4200 Lafayette, LA 70508 Phone: (337) 237-0132 Email: [email protected] Attorneys for Gerald H. Schiff, Chapter 11 Trustee
Case 11-13028 Doc 406 Filed 04/02/13 Entered 04/02/13 14:36:56 Main Document Page 16 of 16