Hooked on a Pipeline

Insurance Claim, North America

Damages to a subsea gas pipeline resulted in a hurricane-related insurance claim. Due to the urgency of the need to repair it, several questions arose as to the schedule and costs. We provided an expert opinion on the reasonableness of repair costs.

A large freighter was caught in a hurricane that made landfall along the U.S. Gulf Coast. In an attempt to control its movements while riding out the storm, the ship dropped anchors. Unfortunately, as the anchors were dragged along the seabed, they became ensnared in an offshore natural gas pipeline. As the storm battered the ship, the pipeline was dragged out of place and bent. While no spill occurred, the mechanical integrity of the pipeline was weakened to the point that a large section had to be replaced immediately. The pipeline owner used contractors to complete the repairs.

Baker & O'Brien was engaged to provide an independent assessment of the pipeline repair costs. Our consultants utilized contracts, invoices, work scopes, engineering drawings, and design documents to determine the actual costs of repairs and the schedule for the repair work. A register was created to summarize information for every purchase order, contract, and invoice applicable to the pipeline repairs. In addition, an expert report was prepared to summarize our view of the reasonable repair cost.

Thomas L. Holtzclaw

Senior Consultant

Transportation and Storage
Insurance Claims / Engineering, Procurement, and Construction (EPC) / Offshore / Pipeline / Quantum/Damages Assessment
North America