Locascio WesternGeco Trial Vol. 1 PM PDF

Case 4:09-cv-01827 Document 427 Filed in TXSD on 07/24/12 Page 1 of 98
UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF TEXAS
HOUSTON DIVISION
2
3
4 WESTERNGECO LLC
*
*
*
*
*
*
*
5 VS.
6 ION GEOPHYSICAL
CORPORATION, FUGRO
7 GEOTEAM, INC., ET AL
8
13
14
July 23, 2012
Volume 1
Afternoon Session
10
12
2:01 p.m.
JURY TRIAL
9
11
09-CV-1827
Houston, Texas
BEFORE THE HONORABLE KEITH P. ELLISON

UNITED STATES DISTRICT JUDGE
APPEARANCES:
15 FOR THE PLAINTIFF:

Lee L. Kaplan
16 SMYSER, KAPLAN & VESELKA, LLP
700 Louisiana, Suite 2300
17 Houston, Texas 77002
713.221.2300
18
19 Gregg F. LoCascio
KIRKLAND & ELLIS LLP
20 655 Fifteenth Street Northwest
Washington, DC 20005
21 202.879.5290
22
Sarah Tsou
23 Timothy K. Gilman
KIRKLAND & ELLIS LLP
24 Citigroup Center
153 East 53rd Street
25 New York, New York 10022
212.446.6435
Johnny C. Sanchez, RMR, CRR - jcscourtreporter@aol.com
177
178
1 FOR ION GEOPHYSICAL CORPORATION:

David L. Burgert
2 Susan Kopecky Hellinger
Jonathan M. Pierce
3 Jonna N. Stallings
Ray T. Torgerson
4 Eric D. Wade
5
PORTER & HEDGES LLP

6 Reliant Energy Plaza
1000 Main Street, 36th Floor
713.226.6694
8
FOR FUGRO GEOTEAM, INC.:

10 Gordon T. Arnold
Jason A. Saunders
11 Anthony Hong
ARNOLD KNOBLOCH LLP
12 4900 Woodway Drive
Suite 900
14
James M. Thompson
15 ROYSTON RAYZOR VICKERY & WILLIAMS LLP
Pennzoil Place
16 711 Louisiana Street, Suite 500
Houston, Texas 77002
17 713.890.3218
18
Court Reporter:
19 Johnny C. Sanchez, RPR, RMR, CRR
515 Rusk, #8016
713.250.5581
21
Proceedings recorded by mechanical stenography. Transcript
22 produced by computer-assisted transcription.
23
24
25
Johnny C. Sanchez, RMR, CRR - jcscourtreporter@aol.com

179
I N D E X
1
2
3 WITNESS
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
PAGE
THOMAS SCOULIOS
DIRECT EXAMINATION BY MR. LOCASCIO.............
241

180
THE COURT: Mrs. Loewe is checking with the
2 jurors what hours they want to work, so we'll have that

3 information for you later.
4
02:01:11PM
After thought, I am going to allow
5 Mr. Sim's testimony. It will not be before Monday,

6 earliest he can be presented by plaintiff, and defendants
7 will have an opportunity to take his deposition at the time
8 of their choosing. It will be of unlimited duration, and
9 no questions would be considered inappropriate.
02:01:32PM
10
If defendants do want to file another
11 Daubert motion, they're certainly entitled to. I do agree

12 it's a very close question, but I am going to allow it.
13
Okay. Do you want to tell Mr. Parker
14 it's -02:01:45PM
15
MR. BURGERT: Your Honor, and will be we be
16 allowed to file a rebuttal report?

17
THE COURT: Yes. Yes.
18
MR. THOMPSON: Your Honor, will be required for
19 rebuttal report or will our rebuttal witnesses be allowed

02:01:57PM
20 to testify outside the scope of their initial report?

21
THE COURT: They'll be allowed to testify
22 outside the scope.
02:02:16PM
23
Okay, Mr. Parker, we're ready.
24
For those of you who came in late, the
25 only reason I'm so casually dressed is I can't get my hand

181
1 through a dress shirt much less tie a tie. My apologies

2 for my appearance.
3
Opening statements, 45 minutes maximum. I
4 advise you not to use all of it if you can find your way to
02:02:50PM
5 be more concise.
6
CASE MANAGER: We're going to need a few
7 minutes. They're not all back there.
02:06:02PM
THE COURT: They're not all back yet?
CASE MANAGER: No.
10
(The following was held before the jury)
11
THE COURT: Members of the jury, please be
12 seated.
13
Okay. We begin with opening statements.
14 By tradition, plaintiff always goes first.

02:06:09PM
15
MR. LOCASCIO: May I proceed, Your Honor?
16
THE COURT: You may.
17
MR. LOCASCIO: This is a big case, but it is
18 also a simple case. WesternGeco, through invention, a lot

19 of hard work and over a hundred million dollars in
02:06:41PM
20 investment, developed a revolutionary system to image the

21 sea floor and underneath the sea floor to find oil and gas
22 reserves. For their work, WesternGeco received four United
23 States patents. They cover a system you will hear called
24 lateral steering. Lateral being side to side, steering
02:07:11PM
25 streamers.

182
These streamers you'll hear
2 are up to 6 miles long behind a ship in the high seas.

3 They allow WesternGeco, this technology of steerable
4 streamers, to steer what are actually the largest manmade,
02:07:27PM
5 moveable structures on the planet.

6
ION and Fugro infringed these
7 patents. Since 2007, ION and Fugro have partnered together

8 to offer WesternGeco's technology to oil and gas customers
9 in competition with WesternGeco.
02:07:49PM
10
How does their partnership
11 work? Well, ION makes equipment. They sell that equipment

12 to Fugro, and Fugro uses that equipment to perform these
13 surveys.
WesternGeco on the other hand,
14 makes its equipment and performance services. So this

02:08:07PM
15 collaboration of ION and Fugro compete with WesternGeco to

16 take business away.
17
The Court has already decided
18 that ION and Fugro infringed one of these patents. So you

19 will not be asked if ION and Fugro infringed, but rather,
02:08:33PM
20 how many of these patents and claims they infringed, and

21 how much they should pay for that infringement.
22
What is infringement? It's
23 when you take something that doesn't belong to you. ION

24 and Fugro took WesternGeco's technology. If you take
02:08:59PM
25 something, the right thing to do is to stop using it, and

183
1 pay for what you took. But you'll see that's not what ION
2 and Fugro did.
3
After WesternGeco caught
4 them, ION and Fugro kept on infringing. After their own

02:09:20PM
5 oil and gas customers told them, we think you're infringing

6 WesternGeco's patents. They kept on infringing.
7
After their own employees
8 rang the alarm bell and said, every single survey we do is

9 infringing. They kept on infringing. And after the Court
02:09:45PM
10 decided they had infringed one patent, they still did not
11 stop.
12
Worse still, after they've been caught,
13 and so many people instead of making it right they made it

14 worse. Life is about choices. Do you do the right thing,
02:10:08PM
15 or do you do the wrong thing? Do you make something better

16 after you've made a mistake, or been caught, or do you make
17 it worse?
18
We're here today because ION and Fugro made
19 the wrong choice. They didn't make it right, they didn't

02:10:25PM
20 pay, they made it worse.

21
Over the coming weeks, you will see and
22 hear from witnesses and documents, what ION and Fugro did,
23 what ION and Fugro knew, and how that has harmed
24 WesternGeco.
02:10:43PM
25
We'll also ask you to protect the rights of

184
1 those who invent, who invest, and who develop the

2 technology to find the resources we all need.
3
My name is Gregg LoCascio, along with my
4 colleagues, Lee Kaplan, Tim Gillman and Sarah Tsou. We're

02:11:05PM
5 proud to represent WesternGeco, the owner of these four

6 patents.
7
This case can be boiled down to three
8 topics, can I switch? Thank you.

9
02:11:33PM
ION and Fugro's motive, ION and Fugro's
10 infringement, and their efforts that have been quite

11 lengthy to get away with it.
12
First, what happened? ION and Fugro saw
13 something they wanted. They realized something that they

14 could use to make their business better except, you'll hear
02:11:51PM
15 it's patented by WesternGeco.

16
At the time, ION and Fugro were falling
17 behind, the technology that ION had was becoming

18 commodified. It was becoming every day off the shelf gear.
19 It was not aspiring their customers, it was not on the
02:12:10PM
20 cutting edge.
21
Fugro was also falling behind. We've all
22 seen this come up in everyday life. You may have had a

23 monitor or television that looks like the one at the bottom
24 of the screen in red, still have one of those actually.
02:12:23PM
25 It's a computer monitor, the upper, on the top you see the

185
1 flat screen. And there was a time where, wow, it was

2 pretty great to have that big box monitor on your desk.
3
Now, you don't really want that. If you get
4 a new computer you probably can't even find one, you get a
02:12:39PM
5 flat screen. Over time the technological leadership

6 changes. That's what patents are all about. To inspire
7 new inventions like this.
8
This case has two technologies, the top
9 conventional streamers, streamers towed behind the ship,

02:12:57PM
10 and I'll show you pictures so you'll get a sense of it.

11 They don't steer. They're behind the ship, and if they
12 bump into each other and entangle, that's a problem, and
13 we'll talk about why that's a problem.
14
02:13:09PM
And lateral steering, which is the blue
15 line, which WesternGeco pioneered, patented and the system

16 of keeping that, keeping that -- keeping those streamers
17 where you want you will see is no easy task. That's not
18 what customers want. The surveys they get will be better,
19 and I'll show you some now.
02:13:22PM
20
You'll also hear during the trial, Fugro's
21 own executives, Mr. Hans Meyer. He was managing director

22 at the time of Fugro, who says, in 2006, we were not a true
23 competitor with WesternGeco. They didn't offer as good a
24 services as WesternGeco.
02:13:39PM
25
But they knew that lateral steering, they

186
1 could get into that market, that that would allow them to
2 be more profitable. It was such a good deal, that since
3 then, Mr. Meyer, he's been promoted. This decision worked
4 out quite well for Mr. Meyer. The business was successful,
02:13:56PM
5 by using lateral steering, and he moved up.

6
After they both recognized the need for this
7 technology, ION and Fugro component maker and survey

8 company teamed up and agreed to join forces. You'll see
9 they had a meeting in Rome, and they got together, and they
02:14:15PM
10 recognized it would agree to be mutually beneficial to

11 create a business relationship between the two companies,
12 to develop control systems around the DigiFIN lateral
13 control device.
14
02:14:30PM
DigiFIN, it's the first time you've heard
15 that word, is the device on ION and Fugro's side that

16 steers these streamers. It's called a QFin at WesternGeco,
17 the Q product, the Q service.
18
They also identified that this agreement
19 would accord or give Fugro a competitive advantage and give

02:14:49PM
20 ION what they needed; access to survey vessels.

21
So they've seen a solution, except it's a
22 problem. It doesn't belong to them. Let's step back. I

23 want to show you a little bit so you can have an
24 understanding of what a seismic streamer vessel and array
02:15:09PM
25 look like. Here we are in Houston, Texas. And zoom in,

187
1 and you will see 610, going around the city. Conveniently
2 for the facts of this case, because streamer arrays can be
3 up to 6 miles long, the 610 is about 12 miles across. So
4 where we are today is just about the middle, the
02:15:33PM
5 courthouse.
6
A seismic streamer, a seismic survey vessel,
7 has streamers on it that go back 6 miles behind the ship.

8 And you'll hear, Mr. Scoulios when he started the guy on
9 the back of the deck, the new guy, let's say. And he says
02:15:50PM
10 when you get out there in the sea, 6 miles away or then it
11 was shorter, you can't even see the boat you left. That's
12 how long these are. It's almost a little hard to
13 comprehend. It's a streamer going from where we are now
14 out to on the left, and we put the streamers ship on there
02:16:09PM
15 for you.
16
If the boat was where we are, the end of
17 each of these streamers would be on the left in Memorial

18 Park. If it went east, that ship would get all the way to
19 the port of Houston before the streamers passed us at the
02:16:29PM
20 courthouse.
21
We would just keep watching streamers go by
22 for that ship to go all the way to the port of Houston.

23 These streamers are up to 6 miles long, and there are more
24 than one of them.
02:16:43PM
25
You think about it, if you tow a car, if you

188
1 tow it with rope, it's harder than with a tow bar. Let's
2 go with old school. We're going to tow it with rope. You
3 ought to have a guy in that car probably, hit the brakes
4 and probably the steer.
02:16:56PM
Imagine this, you're towing 6 miles long of
6 something, multiple streamers of them, near each other.

7 It's not a road, it's water, so you add the effect that
8 they might go up and down and there's waves and a lot of
9 other things that probably make it a little bit hard.
02:17:14PM
10
The system, WesternGeco patented was a way
11 to control all of those streamers, all of the devices so

12 that they don't do what would probably happen if you tried
13 to tow even a small piece of that car trailer 6 miles
14 behind you.
02:17:29PM
15
Look at that in a second. Here's a
16 vessel. It's a seismic survey vessel, WesternGeco owns

17 them, Fugro has some too. We'll talk about that. But what
18 it does is it goes through the water, which you'll see.
19 You can see it on the big screen, the lights are on, but I
02:17:46PM
20 think you can see it. Right about there, the back of the
21 ship, it's called an air gunner source. And then this here
22 is the streamer that runs off the back, that line you see
23 on the top of the water.
24
02:18:00PM
And first, the source submits a seismic
25 bubble array. You've heard the word seismic before on TV

189
1 in the context of maybe a earthquake. It's essentially a

2 type of wave that can go through the earth. And it goes
3 down from the source. And some of it does bounce back off
4 the bottom of the ocean floor. But some, like Mr. Kaplan
02:18:19PM
5 said, bounces off levels underneath the ocean floor. And

6 then it comes back up those reflections and refractions to
7 the streamer, and the streamer has microphones since
8 they're under water, they're called hydrophones on it. And
9 they pick up all of these bounce back and refracted and
02:18:38PM
10 reflected signals.
11
And from that, it's in computing power, we
12 start to see what's underneath the sea floor. And you cab
13 find whether it's a reservoir, maybe it's oil, maybe it's
14 gas under the ocean.
02:18:53PM
15
In the old times, and still sometimes
16 today, in particular circumstances, you'll see a 2D survey,

17 2D meaning it's one streamer. It's 2D, because it gets a
18 slice. It only can detect what's under it. So you see for
19 instance, in this 2D survey, maybe a little piece of an oil
02:19:16PM
20 deposit.
21
Now, that could be a really small oil
22 deposit, or it could run on and on in the other direction

23 for miles. The oil company wants to know that. So people
24 came up with 3D surveys. What you see here in the 3D
02:19:31PM
25 survey are multiple streamers.

190
In the 2D version, you didn't have to worry
2 about your streamer getting tangled with another streamer

3 because there was only one. And the 3D survey, you have to
4 make sure that you can do anything you can to try to keep
02:19:46PM
5 these from getting tangled. I'll show you that in a

6 second.
7
So the 3D survey is now able to go down and
8 get a 3D cube image of what's underneath the seabed floor.

9 And what we've seen in red is that reservoir. And now you
02:20:01PM
10 know if you did a 3D survey, this is a much better find for

11 the oil company. You also can figure where maybe we should
12 drill, as opposed to just hoping to hit it.
13
You'll hear about something called 4D
14 surveys. You might think, what's the fourth dimension?

02:20:17PM
15 It's time. And so, it's like a time lapse photo. If I

16 want to know what this block of Houston looked like 50
17 years ago, and 50 years before that, well, if I had a
18 cavern at the same exact spot on today, 50 years ago, 50
19 years before, and I aimed it the same direction, I'd be
02:20:37PM
20 able to overlap and see what changed. My guess is not much

21 stayed the same, but if anything stayed the same you'd see
22 it.
23
A 4D survey is the same concept. The oil
24 company wants to know what's changed. And you will see

02:20:51PM
25 there's now a rig where our survey field is, because after

191
1 the 3D survey, there's oil there, let's drill. Now, it's

2 kind of a problem if you're trying to pull a ship by it
3 because you've got to go around it.
4
02:21:04PM
What's important about 4D survey and why
5 this technology is so important, is that you need to be in

6 the same place when you take the picture, like the time
7 lapse photo.
8
Because if I'm now a little bit off, when I
9 take that picture, you're not going to be able to tell what

02:21:19PM
10 changed because you're not looking at it from a slightly

11 different angle. So you have to line up the streamers,
12 same spot as they were the last time, except you're in the
13 middle of the ocean in the waves, pulling them by a ship
14 and they're 6 miles long. That's no easy task.
02:21:34PM
15
The 4D survey, you take it a few years later
16 and maybe you see the reservoir has depleted a little bit,
17 maybe something has shifted. That's also something oil
18 companies pay a great deal of money for.
19
02:21:49PM
I mentioned tangles. If you have ever been
20 fishing on a boat with more than one line, if you're like

21 me, you've probably got it tangled. The first thing you do
22 is you hold your rod up, and the person next to you holds
23 the rod down, and you try to sort that out. If it doesn't
24 work you probably get out a knife or scissors and you cut
02:22:03PM
25 the line. Maybe you lose $1.50, a lure and some line, bait

192
1 and lure. You don't cut these loose. Cutting loose a

2 6-mile long million-dollar streamer is not an option for a
3 lot of reasons. And so, tangles are a lot more
4 problematic. And what you see here is in the current, if
02:22:23PM
5 you can't steer the streamers. You can't keep them where
6 you want them, that happens sometimes. And for an oil
7 company and for Fugro and WesternGeco, the last thing you
8 want is for that to happen, because not only do you have
9 damage and cost, but you lose time. And every day this
02:22:40PM
10 vessel is out there, costs hundreds, thousands of dollars.

11 If you lose a week out there, you're looking at a million
12 dollars. And so, avoiding tangles is a huge benefit to
13 having the ability to steer the streamers.
14
02:22:59PM
You're also going to hear about something
15 called infill. Infill, you might say, well, what's that?

16 The thing about it as the wake of the boat causes something
17 called trouser. I gather it's something that looks like
18 your slacks. They fan out at the bottom. And what you see
19 here is a gap in the middle, because the natural tendency
02:23:16PM
20 of the wake of the boat is to push those streamers out.

21
I don't know if you've ever heard that.
22 I've mowed the lawn a lot when I was a kid. If you mow the
23 lawn and it's a big straight field, you go one way, you
24 turn the mower around and you come back.
02:23:31PM
25
If you do a good job, the lawnmower lines up

193
1 with the last line. If you're in a rush, maybe not paying

2 a lot of attention, if you're a little bit off, I want to
3 finish my job earlier, but when I'm done there's going to
4 be these little lines that stick out. And with my lawn, my
02:23:44PM
5 mom wouldn't have been real happy, the problem now is my

6 wife wouldn't be happy about it. If I was getting paid to
7 do it, you might be finished there. That was not an option
8 to walk out with the strips.
9
02:24:00PM
Now, all you had to do, all I did was I
10 tried to mow around and did another pass, maybe it took a

11 little fuel, took a little time. If you miss a gap like
12 that in the sea, it takes these ships 10 to 12 hours to do
13 one pass, one rundown of the lawn, and then another six
14 hours to turn the boat around to do the next pass.
02:24:17PM
15
So going back to clean up the strips is not
16 an option. If you do, you pay a lot of money. And people

17 want as low, as little infill as possible, because they
18 want the jobs done on time, and they want them done under
19 budget.
02:24:33PM
20
Lateral steering allows you to keep those
21 streamers where you want them. It keeps them straight, in

22 this case, something called streamer separation mode.
23 Think of it as a straight line pattern. But it also allows
24 you to do other features that didn't exist before lateral
02:24:51PM
25 steering.

194
Let me talk to you a little bit about how
2 this all works. On these streamers are devices called

3 streamer positioning devices. Sometimes you'll hear them
4 called birds. And I guess they have wings on them at some
02:25:05PM
5 level. So that's why people sometimes call these birds.

6 This bird device or streamer positioning device is smart.
7 It's not just flaps in the water. It's connected through
8 the cable, to what's called the lateral controller, which
9 looks like a lot more advanced than that computer right
02:25:25PM
10 there, like the one I have with the big box monitor. And
11 what it does is it sends signals to that bird, that bird
12 has its own brain in it at the local level, and it gets
13 signals, and it constantly tells it every couple of
14 seconds, how to move to keep that streamer where you want
02:25:40PM
15 it.
16
They're all not doing the same thing
17 because the current is not the same because it's 6 miles

18 long. Maybe you're going around an obstruction. And so
19 now you'll see a full streamer array might have 200 of
02:25:54PM
20 these birds on it, and each of these is getting a signal,

21 not the same single, mind you, because that wouldn't do
22 much of anything because they're experiencing different
23 currents, and they're in a different place, and you need to
24 steer the streamers differently.
02:26:09PM
25
And this is all happening in realtime as the

195
1 ship is being pulled across the sea. This technology

2 allows other things, something called fanning out of the
3 streamers. That's not the natural shape those streamers
4 would necessarily take. But in some instances, that's what
02:26:24PM
5 an oil company wants to be able to do. They have a wider

6 back end to your streamer, you want to deploy the streamer,
7 it's a lot safer to put it out and you can keep it separate
8 like that.
9
02:26:36PM
You'll also hear something about called
10 feather mode. Feather mode kicks them off to the side. So

11 now they would have been straight behind my ship, but now I
12 angle them a little bit. That's certainly not the natural
13 tendency of those streamers when you're driving you ship in
14 the water. But that allows you to get to corners and nooks
02:26:52PM
15 and go around things, that you wouldn't otherwise be able

16 to.
17
Customers want lateral steering, not just to
18 avoid tangles, but because infill, going back to mow the

19 pieces of the lawn you missed the first time, it takes time
02:27:07PM
20 and costs money. It allows you to turn faster. With this

21 technology you can control the streamers through a turn in
22 a way that you couldn't if you just swung it around, if
23 you're pulling a big trailer and you turn sharply, if
24 you're towing 10 trailers it's even worse what can happen
02:27:23PM
25 if you can't control what they are. It also presents the

196
1 risk of tangles. As a result, if you don't have this

2 technology, it's slower surveys, and you get worse data,
3 which is what you've been paid to get, after all.
4
02:27:38PM
Lateral steering allows you to have the
5 streamers where you want them, reduce the amount of infill

6 time, turn better and faster, more efficiently and avoid
7 tangles. That leads to faster service, better results, and
8 not surprisingly more business, because customers want
9 that.
02:27:53PM
10
The oil and gas companies will pay Fugro,
11 WesternGeco 10, 20, up to 40 or $50 million to shoot one

12 survey. To go out and get an image with a ship like this.
13 Fugro is paid on average $13 million per survey. This case
14 involves over 200 surveys like this.
02:28:23PM
15
You'll hear not just from WesternGeco, but
16 from ION and Fugro themselves. That DigiFIN and lateral

17 steering control, enable denser spacial sampling. That
18 means they're closer together when you want them, and
19 increase productivity. That's on ION's own Website.
02:28:42PM
20 That's what they tell their customers because they think

21 this technology gives them a benefit.
22
Fugro also points that out. They have
23 glossy advertisements. They put in trade magazines and

24 they say at the bottom, the client was very happy with the
02:28:56PM
25 results, especially the reduced infill, meaning they didn't

197
1 have to go back and keep doing the same passes over and
2 over.
3
You'll also see a video that ION
4 themselves have on the Website, and it explains this

02:29:12PM
5 lawnmower infill scenario quite well. It shows

6 side-by-side, a job on the left where you have those gaps,
7 the white spots, and the one red, that's the grass my
8 customers noticed when I missed it on their lawn.
9
02:29:28PM
On the right you have the job where you did
10 a really good job with your mower, or you have lateral

11 steering because you didn't have any gaps. And what ION
12 themselves point out is to go back and fill those in. It
13 took six more days for those five spots, and cost
14 1.8 million Euro more, which is almost $2.2 million saved
02:29:52PM
15 on a job like this, for just six days more efficiency.

16
After recognizing the value of this, ION and
17 Fugro also realized they had a problem because WesternGeco

18 owned this technology, they had these patents. And their
19 own internal documents in the course of a case like this,
02:30:14PM
20 WesternGeco could have never known about this before now,

21 in a case like this, you get to see the other side, memos
22 and business plans we call discovery.
23
And during that process, we got to see what
24 inside they were talking about. And we see here the first
02:30:30PM
25 one, ION saying currently the only competitor in the cable

198
1 steerage market is WesternGeco with their proprietary Q

2 system. You recall I said our system is called Q. That's
3 the system they're talking about. They themselves called
4 it proprietary. When you see that, think patented. That's
02:30:49PM
5 what it means. It's proprietary to WesternGeco. That

6 means it's owned by WesternGeco. They knew full well, that
7 this was patented.
8
They also told people, until now only one
9 company, they didn't say WesternGeco, had the proprietary

02:31:03PM
10 technology to perform this work. You saw in the patent

11 video the suggestion it's an F1, a patent is like a deed to
12 your property. The patent describes the boundaries of your
13 property, what you own and what other people cannot come
14 on, without asking you and paying you to do so.
02:31:22PM
15
So ION sees this property line. They see
16 the fences, which are four of the United States patents.

17 And they realize, we don't own this, WesternGeco does. So
18 what do they do?
19
02:31:38PM
Well, they take WesternGeco's technology
20 anyway. They decide not to do the right thing. They don't

21 offer to pay us. They don't ask, they just take it. They
22 know right from wrong. And they also know that patents
23 again, this is in the video this is a core.
24
02:31:57PM
The Judge said at the beginning of your jury
25 selection, patents were actually in the Constitution with

199
1 all the great things the framers had to deal with,

2 inventions made the cut. And what they said, and it's in
3 the Constitution today, is that to promote the progress of
4 science, Congress has the right to give someone for a
02:32:18PM
5 limited time, the exclusive right to use their invention.

6 Because if you don't have that, the framers realized people
7 wouldn't innovate. They wouldn't spend hundreds of
8 millions of dollars to develop the technology because as
9 soon as you come up with it, somebody else can just come
02:32:33PM
10 take it and spend no money in research and development.

11
Patents have claims. What you see here is
12 claim 18 of the '520 patent. It describes the boundaries

13 of WesternGeco's property. And we'll go through this in
14 detail. You'll hear from experts who will walk you through
02:32:54PM
15 what actually is in ION's equipment, how Fugro uses it, and

16 ultimately how it falls within these patents.
17
But this claim required three different
18 modes, the feather we showed you where it kind of kicks off

19 to the side, and if you do that, you infringe. If you have
02:33:09PM
20 this turn control mode, you fringe then too. And if you
21 have streamers separation mode in a system like this, you
22 infringe.
23
It was so clear ION's own Website identifies
24 that they do not just one of those, but all three of those.
02:33:25PM
25 Their own documents on the bottom show the blue being

200
1 streamer separation, the yellow being feather angle, the

2 green being turn control mode.
3
This claim, the Court has found is
4 infringed. There are other claims. There are another 10

02:33:43PM
5 claims at issue for you to decide. Under the '520 patent

6 as it's called there are another five. And you'll hear
7 Dr. Triantafyllou -- Dr. Triantafyllou is in the gallery
8 today. He's one of, he would not say this, he's too
9 modest, the world's leading expert on this type of
02:34:03PM
10 technology. He's at MIT. He's hired by the oil companies

11 all across the spectrum because they want to understand,
12 get some benefit from his understanding of how technology
13 works in this area under see marine control systems and
14 ocean in here.
02:34:20PM
15
And he'll explain to you how it works, what
16 the claims looks like and how the infringing products fall
17 in this.
18
You're also going to hear after they
19 realized how great this was at Fugro, the first 20 months

02:34:35PM
20 that Fugro used this, they had it on one ship, and on that
21 one ship, they made over $150 million in revenue. And
22 $50 million in profit on the first ship, in the first 20
23 months.
24
02:34:54PM
And what they did and they're very candid
25 about it is they said, we went all in, we realized it, this

201
1 was great, it was lucrative, and if we're going to have it

2 on one, let's go all in. And they bought a full fleet's
3 worth of it. They filled out every single ship on their
4 fleet with the same infringing technology.
02:35:13PM
ION and Fugro took this technology, took
6 nothing and got the benefits of it. And you'll hear what
7 it takes to actually innovate and invent this technology.
8 You'll meet Simon Bittleston. Dr. Bittleston is in the
9 gallery, as well as Marc Zajac. The two of them,
02:35:31PM
10 WesternGeco employees, worked tirelessly to innovate and

11 develop and the company backed them millions of dollars
12 worth of investment, to invent this very technology.
13 That's what patents protect.
14
02:35:46PM
You'll also hear a little bit about the
15 patent process. We saw it in the video. By that

16 investment, companies come up with new ideas, they then
17 file patent applications, and the patent, has their
18 experts, they're actually people in each field you have a
19 chip patent you get a chip expert. If you have a seismic
02:36:01PM
20 streamer expert, you get a marine exploration expert, you

21 file a patent on something else, cellphones you get a
22 cellphone person.
23
They have people in each field that this is
24 all they do. They look at technology and the cutting of

02:36:13PM
25 edge of it every day. And two different patent examiners

202
1 looked at these patents and four times granted these

2 claims. Four times.
3
Because they realized at WesternGeco that
4 they would get protection for this, they were willing to

02:36:29PM
5 keep investing and keep growing the marketplace and giving

6 more benefits to the oil and gas companies. And they
7 invested over a hundred million dollars to not just come up
8 with the technology of the patents, but to grow the market,
9 to persuade customers, this will give you a benefit; we can
02:36:45PM
10 do things we couldn't do before with this technology and

11 then, ultimately, the market takes off, and that's when ION
12 and Fugro step in. Again, you'll see their own documents,
13 talking about how this was the marketplace they wanted to
14 break into. By using DigiFIN existing customers, we'll be
02:37:05PM
15 able to compete in the proprietary Q-Marine Systems' market

16 space. The market space of Q lateral steering they,
17 described as proprietary WesternGeco, and with this
18 technology, they would enable customers to get into that
19 space.
02:37:18PM
20
The bottom document, you'll see
21 highlighted. DigiFIN opens the door to 3D vessels, 62 of

22 which there were at the time, to compete in the market
23 space that WesternGeco has created. This is not a document
24 that WesternGeco came up with. This is at ION. They sit
02:37:37PM
25 down and they're talking candidly, internally, and they

203
1 say, WesternGeco created this market, it's proprietary to

2 WesternGeco; but if we do this, we can open the door to
3 people like Fugro to compete with them.
4
02:37:52PM
What happens? It's not surprising what
5 happens. ION and Fugro aggressively target WesternGeco's

6 customers. They go to them, and they say, We can offer
7 this too. And indeed, since we didn't spend as much for
8 R and D, we can give it to you maybe even a little bit
9 cheaper.
02:38:05PM
10
They're going to tell you now customers
11 really don't want this, that this isn't the reason

12 customers buy it, that they use them for other purposes,
13 and that it's not worth very much at all. Except you're
14 going to see in their own documents, ION: "Steerable
02:38:23PM
15 streamers add definable value propose to oil companies and

16 seismic contracts. The use of steerable streamers is
17 increasing year on year and becoming a requirement for many
18 surveys.
19
02:38:37PM
You'll see Fugro talk about customers. This is
20 a big oil company called Apache, that their surveys will be

21 full DigiFIN, and this is their expectation. And the
22 bottom one is tough to read, saying that Apache has stated
23 steerable is mandatory on 3D and 4D. They're going to tell
24 you it's not really required. It's an option. They would
02:38:56PM
25 have still gotten all these jobs without it. Except they

204
1 decided to go all the way in and spend a lot of money to

2 put it on the fleet, and their customers told them, You
3 have to have it if you want our business.
4
02:39:10PM
You'll see tenders, and these are long,
5 the business documents, witnesses who interacted with those

6 will come up to you and talk about them. But those tenders
7 also say, You have to have lateral steering. And if you
8 want this job, think of it as the requirement. I happen to
9 need a plumber if I was going to replumb some part of my
02:39:26PM
10 house, or I might put that out for bid. I might have three
11 plumbers tell me what they could do it and what it would
12 cost, kind of like what a tender is. And they come back
13 and say, We can do it, we all have that equipment, and
14 here's what it's going to cost. And these tenders say it's
02:39:39PM
15 required.
16
You're also going to see that, right here
17 in the United States, Fugro was bidding on projects. Fugro

18 sent this tender you see on the screen in response to a
19 invitation from a company called StatoilHydro. It sent it
02:39:54PM
20 from Houston to Houston, to StatoilHydro. And they touted

21 how they're digital lateral control system, the infringing
22 DigiFIN, would give them more success, better features and
23 how it's installed on all of their 3D vessels.
24
02:40:18PM
You'll also see them, in their own
25 e-mails, perhaps the most candid assessments where people

205
1 are just quickly responding to one other. They're not

2 thinking it's going to someday be here in front of a jury.
3
"Question: Would it be possible to get
4 away without using steerable streamers?"

02:40:31PM
"Response. Steerable streamers for this
6 particular job is a MUST," all caps. Indeed, they say, "We

7 won the job because of it."
8
And ION, when they're talking about Fugro,
9 pointed out what I started with. Fugro has gone from

02:40:47PM
10 laggard in tech in leading -- to leading the industry in

11 steerable decisions. That's because they're now using
12 ION's technology that they opened the door into
13 WesternGeco's market with.
14
02:41:04PM
You're also going to see that on ION's own
15 Website, despite what they say, that these aren't required

16 and no one cares with them, what they and ION really think
17 because, on their own Website, they have had a video, and
18 the video talks about whether ION thinks steerable
19 streamers are important or not.
02:41:47PM
20
21
(Whereupon, the video was played)

MR. LOCASCIO: So, while in court, you're going
22 to hear a lot about how steerable is not required, they

23 didn't win jobs because of it. That's not what ION thought
24 and thinks when they tell people, their customers and the
02:42:03PM
25 public about this. That's what they're going to tell you.

206
The result is ION and Fugro took jobs
2 using WesternGeco's technology. What should they do about

3 that? What should happen? Well, they should pay for what
4 me took unlawfully. You'll hear there are 207 surveys.
02:42:22PM
5 The total survey revenues, how much they got paid from oil
6 companies, the people who performed these surveys, is over
7 $3 billion. And 25 of those surveys, you'll hear
8 WesternGeco, you'll hear from Ray Sims. He's an economist.
9 He comes -- he'll look at these bids. You'll also hear
02:42:46PM
10 from Robin Walker who works at WesternGeco and describes,

11 Some of these jobs there's no question we wouldn't have
12 gotten because there would not have been an option without
13 the infringement. Not all. We understand that some
14 customer may really love Fugro. 25 of 207 jobs we're
02:43:00PM
15 seeking what we're entitled to, which is the profit we

16 would have made if they hadn't infringed. And on those 25
17 surveys, Fugro got paid 319-plus-million dollars. Cost
18 WesternGeco would have obviously had to spend money for
19 fuel and equipment and personnel. Back that out, and
02:43:20PM
20 WesternGeco is entitled to $159 million dollar for those 25

21 jobs.
22
Now, there are 182 jobs where our
23 technology was used. You'll hear the law requires a

24 reasonable royalty for that. Essentially, if you're going
02:43:33PM
25 to use someone's product to go in their property, you have

207
1 to pay to do it. And you'll see Fugro's own documents

2 saying they were hoping to charge $20,000 a day on each
3 survey to use this technology. We'll walk through how many
4 days they did this work and what's that worth.
02:43:53PM
For these types of surveys using
6 WesternGeco technology, the defendants and people who

7 performed these surveys made over $3 billion. On each one,
8 Fugro on average makes more than $13 million, and despite
9 that and knowing they were infringing our technology, ION
02:44:11PM
10 and Fugro have never paid WesternGeco anything. Nothing.

11
Well, what happens? Right now, we're
12 going to see what happens. You're going to see it here

13 over the next two weeks, ION and Fugro knew they might get
14 caught. This wasn't a surprise. They talked about how,
02:44:31PM
15 after they did the first study with their technology from
16 ION, they were concerned that they implicate our patents.
17 Did that concern change? Did they go down? No, it's
18 remained about the same today.
19
02:44:47PM
Their initial concern, they've had it all
20 along. You'll see documents like these from Fugro, saying,

21 I studied the patent documents. We might have problems on
22 the navigation side, with Geco, that's WesternGeco. The
23 bottom one, ION wanted them to tell everybody about how
24 great this was. And they said, We're not at ease with
02:45:07PM
25 Geco's patent issues. We need a letter of guarantee from

208
1 us, freeing us from potential claims.

2
They said, Well, if you want us to go out
3 there and tell how great the product is, you're going to
4 have to cover us on the back side because it looks like we
02:45:19PM
5 infringe.
6
And you'll meet Leif Morton By, who says,
7 after he got a written document from a oil company telling

8 them that they infringed, he doesn't think anything changed
9 at Fugro. They didn't change their plans at all. You'll
02:45:34PM
10 hear him say they thought they potentially could be

11 infringing WesternGeco's patents on every single survey,
12 and despite the fact that this was a serious issue, nobody
13 ever addressed his concerns. The one thing they did,
14 though, was ION wanted to make sure Fugro would keep buying
02:45:52PM
15 products. So they gave them had a product assurance

16 pledge, saying, I know you've been accused of infringement,
17 so if we -- if you keep buying this, we've got your back.
18
They then went further. Fugro said, Well,
19 that's nice, but we want a signed contract that says you'll

02:46:09PM
20 indemnify, that you'll pay for us if we're found to fringe.

21 And ION signed that.
02:46:19PM
22
THE COURT: Five minutes --
23
MR. LOCASCIO: Thank you.
24
THE COURT: -- Mr. LoCascio.
25
MR. LOCASCIO: What happened then? Did they

209
1 make it right, or did they make it worse? You'll see

2 discussions at ION and Fugro about keeping this information
3 confidential. At the top, it says, "Let's keep this under
4 the radar because these patents issues have been haunting
02:46:37PM
5 DigiFIN operations lately."

6
On the bottom, "We have this lawsuit from
7 WG," that's WesternGeco, "to handle. I strongly advise not

8 to include anything about DigiFINs in this published
9 article." The last sentence, it's highlighted, "If we tell
02:46:51PM
10 people about this, we do so, it will only give WesternGeco

11 a better picture on what we're doing, our inventory and
12 where we presently are, and, therefore, help them building
13 a case." They said, Let's hide it. That's not what you do
14 when you want to make it right, when you've been caught.
02:47:09PM
15
Next slide. You'll also see another
16 example of what -- not making it right, but making it

17 worse. Before 2010, ION made all this equipment in a place
18 called Harahan, Louisiana. It's not far from New Orleans.
19 ION makes this equipment, and Fugro is buying it here in
02:47:32PM
20 the United States.

21
And then what would happen is Fugro would
22 send that equipment to Houston and then ship it to wherever

23 they needed it, in this case Norway. Because of that, they
24 infringed WesternGeco's patents. So after 2010, they
02:47:49PM
25 didn't stop. They came up with a new plan. They took half

210
1 this factory, and they put some of the equipment over

2 there -- the same folks in Louisiana made them, but that
3 piece of the factory is now called ION International, a
4 Dubai company. I can assure you these DigiFINs never go to
02:48:07PM
5 the Middle East and they're not made in the Middle East.
6 They're made in Harahan, Louisiana, and they go now not on
7 the truck that's Fugro's truck, but it's ION
8 International's truck. And then they go to Houston still,
9 same as they did before, and make their way to the same
02:48:24PM
10 place they went before. Same stuff, made by the same

11 folks, going to the same place. And the only thing
12 different is they changed the shipping label, ION
13 International care of ION Marine Systems, Harahan,
14 Louisiana.
02:48:39PM
15
They thought they'd found some loophole.
16 They changed some shipping labels instead of stopping what

17 they were doing. This isn't what you do when you do the
18 right thing. This is what you do with you're trying to get
19 away with something and find a loophole. And only now
02:48:54PM
20 after it gets outside the United States does the ION

21 International label fall off and Fugro takes ownership of
22 it.
23
You will see that ION and Fugro will
24 continue to say anything to avoid responsibility. They're

02:49:07PM
25 going to tell you that despite four times, two examiners,

211
1 years of examination, these patents were issued. You're

2 going to hear that their argument is every one of them
3 issued by mistake, every single one.
4
02:49:25PM
What you heard was the patents are presumed
5 to be valid. Just as an example of their excuses, they're

6 going to tell you one patent is invalid because the patent
7 office didn't consider things right; except you'll see on
8 that very patent the same exact things they point to were
9 cited by the patent office. The patent office looked right
02:49:43PM
10 at them and issued the patent.

11
THE COURT: You have one minute. One minute.
12
MR. LOCASCIO: These patents protect
13 WesternGeco's property. These patents are valid, and ION

14 and Fugro should not be able to infringe. So you won't see
02:49:57PM
15 much dispute over ION and Fugro's infringement. It's

16 already been decided. You'll be asked how many patents
17 they infringe. The question you'll face over and over
18 again is whether you should let ION and Fugro get away with
19 their infringement. You'll see their own documents, you'll
02:50:13PM
20 hear their own witnesses and you'll hear how instead of

21 once ever doing the right thing, ION and Fugro continue to
22 do the wrong thing.
23
Should they be allowed to get away with
24 it? That's for you to decide. When I come back after

02:50:28PM
25 closing argument, I'll ask that you find ION and Fugro

212
1 infringed not one claim but eleven claims, their

2 infringement was intentional, these patents are valid, and
3 that they should pay for what me took.
4
02:50:43PM
This case is about whether innovation and
5 the law should be respected, or whether a company can

6 infringe United States patents by simply making excuses and
7 looking for loopholes.
8
Thank you for your service in this case
9 and reaching the right, just result.

02:50:57PM
10
THE COURT: Thank you very much.
11
12
Mr. Torgerson.
MR. TORGERSON: Pardon the delay. May it
13 please the Court?
02:51:41PM
14
THE COURT: Counsel.
15
MR. TORGERSON: Good afternoon. Competition is
16 the backbone of the American free-market economy. Every

17 day companies compete on price or perceived benefits or
18 advantages of their products. And this case is no
19 different.
02:51:56PM
20
While patents protect ideas, the entire
21 patent system is intended to promote progress and encourage

22 innovation. Here, WesternGeco has invented a mousetrap,
23 and my client, ION, built a different, better kind of
24 mousetrap at the end of the day. Instead of letting the
02:52:13PM
25 market decide, and we believe and we'll show you that the

213
1 market has made some decisions on this issue, WesternGeco

2 sought the intervention of this court system to chill the
3 market, and that has happened.
4
02:52:27PM
We will show you that WesternGeco doesn't
5 handle competition very well. The truth is that ION did

6 not take anything from WesternGeco and is not using
7 anything that belongs just to them. ION's technology was
8 designed differently and performs differently than the
9 specific way they claim. You've heard about -- a lot about
02:52:45PM
10 the infringement of claim 18 of the '520 patent, but that

11 finding is not the end of the analysis, however, because an
12 infringement, as you've heard several times, doesn't matter
13 if the patent itself isn't valid.
14
02:52:58PM
We will show you that the '520 patent and
15 several of the others never should have been granted in the

16 first place. We will show you that keeping multiple
17 streamers apart and separate was shown clearly in another
18 much earlier patent.
19
02:53:11PM
With the introduction of more than one
20 streamer, and you saw some of that history with

21 Mr. LoCascio, it's common sense to know that you have the
22 risk of tangling streamers when there's more than one in
23 the water.
24
02:53:24PM
We will also show you that one infringement
25 finding called a single claim does not automatically mean

214
1 infringement of the other 10 assorted claims. Only an hour

2 into trial, WesternGeco has already made that false
3 insinuation, that you're faced with dominos and your work
4 there is done and let's turn to the damages.
02:53:40PM
And finally, we're going to show you that
6 WesternGeco has not been harmed by the sale or use of ION's

7 equipment, and certainly not in the inflated manner in
8 which they claim.
9
02:53:50PM
My name is Ray Torgerson, and again, on
10 behalf of the Porter Hedges team. We're proud and here to

11 represent the hard-working, honest and innovative men and
12 women of ION Geophysical.
13
Now, WesternGeco's patents did not cover the
14 concept of lateral steering itself -- I need to be clear -02:54:05PM
15 much less all possible devices or modes of control or use.

16
A slide that Mr. LoCascio displayed read,
17 "WesternGeco pioneered lateral steering and patented it."

18
They didn't patent lateral steering. They
19 patented devices and methods for using those devices. ION

02:54:23PM
20 had some patents in the field both before and after to this
21 day WesternGeco's own patents. You're going to be
22 presented with other patents including those from ION that
23 show other types of devices that have lateral steering
24 capability.
02:54:37PM
25
If we could go to the next slide, please.

215
For example, there's lots of historical
2 work in this field, and it's an evolving field since the

3 1970s. You're going to hear that the subject of lateral
4 streamer control and even lateral steering devices are a
02:54:57PM
5 natural evolution, a natural evolution of the marine

6 seismic industry that have been discussed since the 1970's
7 after the first 3D survey was performed right here in the
8 Gulf of Mexico. And as technology improved, so did the
9 possible solutions.
02:55:10PM
10
Now, to take Mr. LoCascio's lawnmower
11 analogy, you've got a Lawn Boy mower and a Toro motor -12 mower, and you go and mow a lawn. They might have
13 respective patents, but it's about mowing the lawn. And
14 sometimes the question is not always who was there first.
02:55:25PM
15 But we've got something to say about that too.

16
WesternGeco broadly claims that you can't
17 adequately perform these 3D or 4D surveys without lateral

18 steering even though it's not disputed that 3D and 4D
19 surveys were performed both before lateral steering and in
02:55:42PM
20 their QFin design and even today without lateral steering.

21
THE COURT: Mr. Torgerson, let me slow you down
22 just a little bit; okay?

23
MR. TORGERSON: It's simply not true that each
24 streamer array as you saw in the slides includes

02:55:53PM
25 necessarily lateral steering. Even WesternGeco offers to

216
1 perform lateral steering, or -- I'm sorry -- surveys

2 without lateral steering, and we'll show you that.
3
Now, in contrast, the ION technology that
4 WesternGeco accuses has its roots in a small company in

02:56:10PM
5 Harahan, Louisiana, that used to be known as DigiCOURSE.

6 Although ION bought the company in 1998, most of those same
7 fine people working back there then still work there today,
8 and I think that that says something about my client. Now
9 known as Marine Imaging Systems Division, or MISD, at ION,
02:56:28PM
10 the DigiCOURSE people were known for their superior

11 equipment, such as magnetic compasses, depth control birds
12 and acoustic ranging equipment.
02:56:38PM
13
THE COURT: Slowly now slowly.
14
MR. TORGERSON: This equipment remains the gold
15 standard some 20 years later. It might surprise you that

16 WesternGeco remains a longtime customer of many of these
17 same ION products, and they deploy those out into the field
18 along with their own equipment.
19
02:56:53PM
The evidence will show that the folks at
20 DigiCOURSE, and specifically a talented mechanical

21 engineering engineer named the Andre Olivier, were
22 developing lateral control devices and strategies for
23 controlling those streamers in the early 1990s independent
24 of WesternGeco.
02:57:07PM
25
You will hear that before DigiFIN was

217
1 developed starting back in 2004, ION had considered at

2 least two prior separate mechanical designs and interacted
3 closely with potential customers on that work. You're
4 going to see ION's drawings, handwritten notes,
02:57:25PM
5 photographs, and even prototypes reflecting ION's own

6 separate efforts in this field. Indeed, you are going to
7 hear that ION discussed its work on the subject in 1994 and
8 1995 with WesternGeco's predecessors, Western Geophysical
9 and Geco-Prakla, but no business arrangement could ever be
02:57:47PM
10 reached.
11
Along the way, the evidence will show that
12 ION carefully monitored patents in this field and worked

13 hard to arrive at its own solutions. ION doesn't go around
14 stealing other people's ideas. You're not going to see any
02:57:59PM
15 evidence of that in this case. And on top of it, it just

16 makes sense because it's not good business.
17
Now, if I could have some assistance with
18 my colleagues, Eric Wade and Jonathan Pierce, I'm going to

19 show you two of these devices that ION developed.
02:58:12PM
20
Now, Mr. Wade, with the all red device,
21 this is a DigiBIRD, and a DigiBIRD is an exclusively depth

22 control device. It hangs from a streamer, and we'll show
23 you later one with cuffs that actually mount to the
24 streamer, and these wings can go up and down, or are
02:58:39PM
25 controlled either automatically or from the boat. This is

218
1 the gold standard in the industry. Everybody uses this

2 device in marine surveys, including WesternGeco. They put
3 them only their own boats and lots of lots of volumes.
4 They're one of our largest customers.
02:58:55PM
This is a DigiFIN. DigiFIN, you can see, is
6 a lateral device with a wing that moves and steers. These

7 are two separate devices, but it's not hard to see how one
8 could lead to the other. This was developed in the 1980,
9 and polished into the 1990. And you can see it's not
02:59:13PM
10 difficult to arrive at a lateral device when you simply

11 turn it on its side,
12
And we're going to tell you that story. You
13 can see that it's the same equipment, it's the same motors,
14 and it's based largely on the same software algorithms.
02:59:27PM
15 One developed easily into the other, it's a natural

16 evolution.
17
18
Thank you, gentlemen.

Most importantly, one of the messages I
19 want to leave with you today is that ION is a leader, a

02:59:38PM
20 recognized leader in this industry, not a follower.

21
Other products that WesternGeco accuses of
22 infringement relate to a company known as Concept Systems

23 and Edinburgh, Scotland, that became part of the ION family
24 in 2003. Like DigiCOURSE, Concept had many longtime, loyal
02:59:55PM
25 employees. Concept was and still is known for its

219
1 groundbreaking work in command and control software, the

2 shipboard computer system that communicates with and
3 manages all of the in-water equipment.
4
03:00:09PM
You're going to hear about Spectrum, which
5 is a product that goes back to 1993, and its latest

6 iteration, Orca, which was launched in 2003. Concept's
7 work in this field is well regarded, even by WesternGeco.
8
The people at ION know that their success
9 over time comes from working hard, playing by the rules and
03:00:26PM
10 respecting others. As an equipment manufacturer, ION

11 listened to its customers' needs, monitored the market, and
12 those customers recognized the technical expertise both in
13 Harahan, Louisiana, and Edinburgh, Scotland, and they
14 designed streamer systems to meet those needs.
03:00:43PM
15
ION remains a contender the old-fashion way,
16 because they earned it. Now there is an important

17 distinction between WesternGeco and ION's business models,
18 and you've heard some of that already. ION designs, sells,
19 and makes equipment to contractors like Fugro and
03:00:59PM
20 WesternGeco. ION doesn't bid on or perform marine seismic

21 surveys. ION doesn't even own a boat that's capable of
22 performing one of these surveys.
23
Now, in contrast, the evidence is going to
24 show you that WesternGeco had to rely on another company to

03:01:13PM
25 build its lateral steering, the QFin. You're going to hear

220
1 that WesternGeco did not have the experience or the

2 capacity to build such a device and make it work.
3
More importantly, WesternGeco doesn't sell
4 equipment including the QFin. So when Mr. LoCascio talks

03:01:28PM
5 about it being proprietary, that doesn't mean just that

6 it's patented. It also means that they don't sell it into
7 the market. And that means that, until somebody else comes
8 up with a competing device, a better mousetrap, a different
9 mousetrap, nobody else can perform that.
03:01:45PM
10
When WesternGeco performs a survey, the oil
11 company receives an answer: Here's what the data shows,

12 here's the images, here's what your subsurface looks like.
13 WesternGeco and ION are very different companies, built on
14 very different principles. But did you see how
03:01:59PM
15 Mr. LoCascio tried to push the two companies together? It

16 was always ION/Fugro or the two circle images with ION on
17 top and Fugro on the bottom?
18
There is no special partnership or
19 collaboration between ION and Fugro. It's just simply a

03:02:16PM
20 good customer. It's a good business relationship. Fugro

21 is and always has been an arm's length business
22 relationship and customer of ION's. Fugro was, in fact,
23 the third customer of DigiFIN, not the first, and they had
24 no input on the design or details as to how that device
03:02:34PM
25 would work.

221
To that point, one of the heading of
2 Mr. LoCascio's slides, it said, "ION/Fugro bid on projects

3 that need lateral steering."
4
03:02:46PM
Ladies and gentlemen, you're not going to
5 see a single document in the time that you're here that

6 shows ION bidding on a survey. ION makes its money by
7 buying -- by making and selling equipment into the market.
8 Fugro then takes that and competes head to head against
9 WesternGeco, along with other larger companies, and they
03:03:04PM
10 make a different set of money out of a different basket,

11 and that's very, very clear. And they're going to try to
12 push those two companies together, and it's just not right.
13
The development agreement that was cited
14 to by Mr. LoCascio was simply aspirational in nature.

03:03:21PM
15 You're going to hear testimony that when that document was

16 signed, everybody had good intentions; but since that time,
17 neither ION nor Fugro have performed on it, and yet
18 nonetheless, WesternGeco is here to push the issue because
19 they want to mesh those companies together.
03:03:39PM
20
With regard to this indemnity issue that was
21 raised, I want to address it and put it to bed quickly.

22 You're not going to be asked to answer a question about
23 whether ION has to pay for Fugro at the end of the day
24 under some separate contractual issue. The fact is that
03:03:55PM
25 ION and Fugro have agreed to address this issue later as

222
1 part of their ongoing business relationship. But it fits

2 the story for Mr. LoCascio and WesternGeco to tell you that
3 they're meshed together.
4
03:04:14PM
The evidence shows that WesternGeco closely
5 monitors what other competitive products might be emerging

6 out there. WesternGeco first heard about the DigiFIN while
7 it was still under development, and they heard about it
8 called the DigiWING back in 2004 and 2005.
9
03:04:30PM
In June 2006, at an industry trade show,
10 four WesternGeco representatives, including Mark Zajac, the

11 inventor of the '038 patent, personally intended an
12 unveiling of the DigiFIN product, which included a detailed
13 presentation of ION, about its operational benefits and its
14 control modes.
03:04:47PM
15
Importantly, you are not going to hear that
16 Mr. Zajac or anyone else at WesternGeco pointed to that and

17 said infringement. You're not going to hear that.
03:05:03PM
18
THE COURT: Slowly now, slowly.
19
MR. TORGERSON: What you're going to hear
20 instead is that there was discussion between ION and

21 WesternGeco personnel about ION selling that equipment to
22 WesternGeco to put on its other boats that didn't have this
23 technology. WesternGeco had an incentive by having vessels
24 without QFin, without the ability to laterally steer, to
03:05:23PM
25 purchase equipment off the shelf from a company like ION

223
1 and put it to good use and make still more money. The
2 point there is that there was not an accusation of
3 infringement from the beginning. There was instead a
4 discussion about whether that commercially would make sense
03:05:36PM
5 and we could sell it to them.

6
Internal ION documents will also show that
7 WesternGeco was identified as a potential customer for this

8 product.
9
03:05:48PM
Now, even inside WesternGeco, well after
10 this meeting in June 2006, there was no mention of

11 infringement for some time. The evidence shows that,
12 instead of immediately defending these patents, WesternGeco
13 sat back and waited, one, two, and almost three years
14 before making a public accusation to Western -- or to ION
03:06:08PM
15 about potentially infringing these patents.

16
Now, what was WesternGeco doing during this
17 time? It was watching the market to see how the DigiFIN

18 device would be received. Would it work? WesternGeco
19 technical people had their doubts about ION's design of the
03:06:25PM
20 single fin, DigiFIN device. Will contractors buy it?

21 WesternGeco people said, It sure looked like a lot of
22 equipment to put on a streamer.
23
But while WesternGeco sat back, the world
24 changed at the end of 2008, and we're all familiar with it.
03:06:39PM
25 The global recession hit, oil prices dropped, and the

224
1 entire seismic industry went into a slump.

2
The evidence shows that WesternGeco did
3 not make a single public accusation of infringement until

4 the fall of 2008 at an industry trade show in Las Vegas
03:06:57PM
5 where several WesternGeco executives confronted Statoil, a

6 large Norwegian company. Statoil had hired Fugro to
7 perform a survey using ION's DigiFIN equipment, and Statoil
8 was pleased with those results.
9
03:07:13PM
WesternGeco was not handling the competition
10 very well. Let's turn to the accusations of infringement

11 and invalidity. WesternGeco would have you believe that
12 you are here to protect their intellectual property. That
13 they invented something new and useful, that had been
14 blessed by the PTO in the form of several patents, which in
03:07:33PM
15 turn, gives them the right to sue ION, my client and Fugro,
16 for making and selling those products, or their components
17 from the United States, and for using those products
18 unquestionably outside the United States.
19
03:07:48PM
As the patent video described
20 earlier, a patent is like deed for a piece of land. Here,

21 our position is WesternGeco wants to pick up and move its
22 fences miles back, in all directions and say this is what I
23 actually meant, this is what I actually claimed in my
24 invention.
03:08:05PM
25
You saw the slide with a

225
1 broken white picket fence. We didn't break the fence. We

2 just want to show you and have the opportunity to show you
3 that their fence remains in place and what we do is
4 different and is outside that fence.
03:08:19PM
You will even hear from one
6 of the named inventors Oyvind Hillesund, who doesn't work

7 at WesternGeco anymore, that even he believes the language
8 claim by WesternGeco is stretched, his words, stretched,
9 beyond his original ideas.
03:08:34PM
10
We ask that you look closely
11 and carefully, at these two very different technologies and

12 go beyond skin deep. You'll find that each one has its own
13 unique history and the differences between the two
14 technologies are clear.
03:08:46PM
15
We don't have time for much
16 of these introductions to get into the details of these

17 differences, so I can't explain all the details now. But
18 suffice it to say that WesternGeco bears the burden of
19 proving infringement by a preponderance of the evidence.
03:08:57PM
20 And you've already heard that that means more likely than
21 not.
22
We are going to show you
23 patent by patent, claim by claim, line by line, that what

24 they claim, we don't do.
03:09:09PM
25
We only ask that you listen to all of the

226
1 evidence and apply your own common sense. We also intend

2 to show you that these WesternGeco patents are invalid and
3 should not have been issued in the first place. We bear
4 that burden to show you that, by clear and convincing
03:09:24PM
5 evidence. That they don't reflect new or useful inventions

6 and should not have been issued. That's a challenge we
7 readily accept. We know what the burden is.
8
Again, we're going to show you in a straight
9 forward manner, line by line, step-by-step, prior art, that

03:09:40PM
10 anticipates or makes obvious and discloses what they are

11 subsequently claiming.
12
For example, we're going to show you that a
13 prior patent, the workman patent discloses each and every

14 limitation of Claim 18 of the '520 patent. In other words,
03:09:55PM
15 the finding of infringement that you've heard so much about

16 is simply not the end of the story.
17
And importantly we only need to invalidate
18 one of those control modes, disclosed in Claim 18. So when

19 talk about turn control mode, feather angle mode, streamer
03:10:12PM
20 separation mode, we're going to show you that in 1998, the

21 workman patent talks about a streamer separation mode. And
22 anticipates each limitation in their patent.
23
Now, let's turn to what WesternGeco is
24 asking you by way of damages. WesternGeco contends that

03:10:27PM
25 it's entitled to over $150 million in lost profits

227
1 associated with 25 surveys. Surveys remind you that they

2 were competing against Fugro and other companies for.
03:10:40PM
THE COURT: Slowly, slowly.
MR. TORGERSON: In other words, WesternGeco
5 wants you to believe, that it would have secured every

6 single one of those surveys if DigiFIN did not exist and it
7 was the only company to be able to offer lateral steering
8 through its QFIN device.
9
03:10:57PM
WesternGeco relies primarily on two
10 theories, first, that Fugro has offered to sell surveys

11 discussing the use of the accused ION equipment from the
12 United States. And there is no question that these surveys
13 occurred more than 12 miles offshore. And you're going to
14 hear that this Court has ruled that the maximum reach of
03:11:14PM
15 U.S. Patent Law into these facts is 12 miles. These

16 surveys happened far, far away.
17
You will not hear that performing a survey
18 in international waters or off the coast of this country or

19 that country, is in itself an infringing act.
03:11:30PM
20
Second, ION and Fugro supply or caused to
21 be supplied components from the United States that are

22 intended to be combined outside the U.S., in a manner that
23 would infringe if combined in the United States.
24
03:11:44PM
Recall that WesternGeco does not actually
25 sell its products including QFin. So to be clear,

228
1 WesternGeco was not harmed by losing sales or profits from

2 devices that it otherwise would have been competing against
3 DigiFIN. This is not a DigiFIN versus QFin issue. This is
4 a survey to survey issue.
03:12:04PM
Importantly, WesternGeco wants you to hold
6 ION liable for damages that are unquestionably double,

7 twice the total gross revenue, not just profits, but total
8 gross revenue that ION has received for all sales of
9 DigiFIN's and lateral controls. That's the disconnect
03:12:21PM
10 between the amount of money that ION has recognized for

11 selling DigiFINs, versus the expense of these surveys.
12
But there are larger problems with the way
13 WesternGeco arrives at its huge number when you carefully

14 look at the data. You're going to hear that WesternGeco's
03:12:38PM
15 expert relied on information that was essentially rumor,

16 gossip and hearsay, coffee talk, convention talk, magazine
17 articles, things of that nature, trying to put together how
18 much a company guesswork, one company received versus
19 another.
03:12:52PM
20
We're going to show you that only about
21 10 percent of that information was objectively verifiable

22 because it relates to public bids. We're going to show you
23 that their estimated revenue amount fall apart because
24 they're wildly inaccurate. They're essentially guessing at
03:13:07PM
25 how much money another company made off a survey that they

229
1 lost.
2
And ultimately, WesternGeco, admits you
3 might not ever know why an oil company decides to select

4 contractor A over here instead of the contractor B over
03:13:19PM
5 there for a given survey. Companies make these decisions

6 all the time and award work to this company instead of that
7 company. And that's what we contend we're really here
8 about.
9
03:13:30PM
There are other problems with WesternGeco's
10 damages model. WesternGeco is not entitled to win every

11 survey it bids for. It doesn't have an unlimited supply of
12 vessels that it can just go deploy around the world to
13 cover all of these surveys. In fact, very often
14 WesternGeco just doesn't bid on a survey because it doesn't
03:13:47PM
15 have a boat available.

16
If we can go to the next slide, Mr. Carlot.
17 The evidence is going to show that WesternGeco's own market

18 share dropped from 2001, a high of 40 percent, right when
19 Geo-Prakla and WesternGeco Physical merged together. They
03:14:04PM
20 had a 40 percent marine seismic market share.

21
And by 2007, by 2007, by the time DigiFIN
22 was introduced, that had dropped due to its own conduct to

23 25 percent.
24
03:14:19PM
They can't blame that on DigiFIN. And
25 they can't blame that on ION. They can't blame it on Fugro

230
1 either for that matter. Why was WesternGeco losing bids?

2 Couple of reasons? First they charged way more than their
3 competitors there's no question about that, they're proud
4 of their premium price and the evidence shows that he
03:14:35PM
5 rarely actually did. Instead, what the evidence shows is

6 that companies dropped their price on bids all the time,
7 just to get the work, you're going to hear that it's
8 actually better to work at a smaller profit to keep your
9 crews and your boats working than just not bid because
03:14:50PM
10 you're not going to get enough money.

11
Secondly, you're going to hear that
12 WesternGeco has very strict policies one of their policies

13 that's comfortable is they won't release the sensor data,
14 all of the full sensor data to the oil companies. And the
03:15:03PM
15 oil companies are saying I paid for that. Every other

16 contractor does it, and it's a requirement in some
17 contracts. WesternGeco has policies that other companies
18 don't like, that won't do business with because of it.
19
03:15:18PM
And third, the evidence is going to show
20 that the market understands that WesternGeco's own lateral

21 control device and control systems, don't work as well as
22 advertised.
23
We're going to show you that that Digi bird
24 that you saw, that all red device, they deploy on almost
03:15:32PM
25 all of their vessels. And you're going to hear from a

231
1 WesternGeco employee, who says that the reason for that is

2 because the Q fin device sometimes can't adequately control
3 depth. They're using our equipment.
03:15:50PM
THE COURT: You've used 25 minutes.
MR. TORGERSON: They found the competition that
6 market needed a competitor to provide lateral steering, a

7 topic that had been talked about for 25 years or more.
8 They found ION the trusted bird experts.
9
03:16:04PM
Quickly on the issue of willfulness. On
10 top of accusing ION of infringement, WesternGeco claims

11 that ION did so willfully. ION again has a policy of
12 monitoring patents in this area. From ION's perspective
13 since it doesn't perform surveys, all the method claims
14 don't even matter from ION's perspective.
03:16:21PM
15
Secondly, with regard to the apparatus in
16 the device, you're going to hear from ION employees that

17 what we design, and you saw how we designed it, differs
18 externally and internally from what they claim they've
19 invented.
03:16:35PM
20
You're going to hear that ION recognized
21 and developed a next generation platform steering device,

22 based on its own hard work.
23
Another important fact, ION did not hide
24 the DigiFIN, Fugro did not hide the DigiFIN. It is shown

03:16:51PM
25 in literature, it's shown at trade shows, we've had open

232
1 conversations with WesternGeco, and they know it.

2
WesternGeco bears the heavy burden to show
3 that ION knowingly and willfully infringed these patents

4 after it knew about WesternGeco's concerns.
03:17:05PM
And here's a final fact. When WesternGeco
6 started accusing ION and Fugro of infringing back at the

7 end of '08, ION immediately asked what patents? What are
8 you talking about? Tell me about that.
9
03:17:21PM
You're going to hear that a meeting was
10 held between ION and WesternGeco people to discuss the

11 specific patents. And do you know what WesternGeco did?
12 They refused to tell ION what patents they were talking
13 about. WesternGeco tried to leave ION in the dark. They
14 said well, we're not going to tell you what patents we
03:17:36PM
15 think you're infringing. That's what you're going to hear.

16 And so, here we are.
17
The evidence is going to show that
18 WesternGeco is not really interested in protecting its

19 patents. In this case, WesternGeco is interested in
03:17:49PM
20 slowing down its competitors like Fugro and other companies

21 using ION's equipment. Times are hard for everybody, but
22 we believe that this lawsuit is really about making a
23 market share that they lost on their own.
24
03:18:06PM
I'm confident that at the close of this
25 trial, you'll help WesternGeco understand that the decrease

233
1 of WesternGeco's position in the market, was not caused by

2 ION, and not caused by Fugro, but because of their own slow
3 decline.
4
03:18:19PM
I'm privileged to be representing ION in
5 this case, and I'm proud to be part of a legal system that

6 allows us to have this type of form to resolve this
7 dispute.
8
Let me assure you that using the Court
9 system for profit or to intimidate your competitors is

03:18:31PM
10 wrong. But on the other hand, standing up and defending

11 against such a threat is the right thing to do. I want to
12 thank you on behalf of ION for your service as jurors, and
13 we look forward to presenting you with our full defense.
03:18:49PM
14
THE COURT: Thank you, Mr. Torgerson.
15
Mr. Arnold?
16
MR. ARNOLD: My name is Gordon Arnold. And I
17 have the privilege of representing Fugro-Geoteam in this

18 case. Time is very short for me or I would elaborate more
19 on a couple of points that Mr. Torgerson just brought up.
03:19:12PM
20 But I'm going to talk about a few things that haven't been
21 addressed yet. And I'm also going to talk about a few
22 things that were brought up in Mr. LoCascio's opening.
23
First, Mr. LoCascio made some statements
24 about what the evidence is going to show to you. The

03:19:30PM
25 evidence is going to show in this case that Fugro-Geoteam

234
1 wanted to get into a highly competitive market where there

2 were lots of people who were conducting three dimensional
3 surveys. In order to do that, they went to the most
4 sophisticated supplier of components here in the United
03:19:52PM
5 States or in the world, and went to ION.

6
And in order to outfit their vessels,
7 they bought the best equipment that they could find. They
8 bought equipment that everybody knew how it worked. And
9 everybody knew how Fugro was going to use it. They didn't
03:20:09PM
10 hide had a single thing that they were doing.

11
Now, Mr. LoCascio has implied that this
12 was a conspiracy to willfully infringe and steal their

13 property. When you look at the way that the individuals in
14 this case acted, you're going to see them sitting on the
03:20:31PM
15 stand, and they're going to look at their documents, and

16 they're going to tell you what they did and why they did
17 it. You're not going to have to rely on me, or
18 Mr. LoCascio to tell you whether they thought they were
19 doing something wrong.
03:20:47PM
20
Everything they did, they did out in the
21 open. That's what the evidence is going to show you. The

22 evidence is not going to show you that these folks thought
23 they were doing anything wrong.
24
03:21:06PM
Damages, I think you're going to see if I
25 could have the slide pulled up, please. On your screen you

235
1 see locations where surveys that they say infringe have

2 occurred. The only thing that Fugro did was buy a product
3 from a U.S. company that's sent over there and those birds
4 over there, and put them on their vessels, and then go
03:21:34PM
5 around the world where they were making their surveys. And
6 they say that they should get money for activity that
7 happened outside of the United States.
8
Those damages are inflated. And the
9 evidence is going to show, that not only are they looking

03:21:53PM
10 for money from the wrong place in the world, but their
11 calculations are wrong. And you'll hear that as the money
12 damages evidence comes in. And you'll see that the numbers
13 just won't add up.
14
03:22:21PM
Let's talk about what WesternGeco invented,
15 and more importantly, what they did not invent. They did
16 not invent lateral steering. You're going to see evidence
17 to that effect. You've already seen some of the prior art
18 documents that Mr. Torgerson mentioned. They didn't invent
19 three dimensional steering -- I'm sorry, they didn't invent
03:22:37PM
20 three dimensional surveys. They didn't invent four

21 dimensional surveys.
22
What they designed, and what they were
23 trying to get people to pay them a premium for, was a very

24 complex system that they called Q. Q doesn't stand for
03:22:55PM
25 lateral steering. Mr. LoCascio would like you to think it

236
1 does, but it doesn't. Q represents a special kind of

2 microphone that is in these streamers and that special
3 microphone is what is used to listen for the sound that
4 comes out of the earth after a noise is made in the water
03:23:19PM
5 and it reflects back up.

6
That special microphone is sometimes called
7 the signal sensor technology. And they took signal sensor

8 technology and other technologies, that they know Fugro
9 doesn't use, and they went out in the market and tried to
03:23:35PM
10 get a premium for it. That's what their Q system is.

11
They had a very complex thing that they
12 called a QFin for most of the time they called it a bird,

13 that doesn't look and doesn't act like those things over
14 there.
03:23:53PM
15
So first off, contrary to what they'd like
16 to you to believe, the evidence is going to show that they

17 weren't first. The evidence is going to show that our
18 folks didn't think they did anything wrong. The evidence
19 is going to show that once there may be a technical issue
03:24:15PM
20 about infringement of one claim, our guys never thought

21 they did anything wrong. Fugro bought a product that
22 doesn't infringe, that they didn't think infringed, from
23 the United States, and used it outside of the United
24 States.
03:24:34PM
25
I wish I had more time to go into the detail

237
1 that my predecessors did, but I think it's time we got to

2 something that you really ought to be listening to, which
3 is the real people and the real evidence.
4
03:24:45PM
Thank you very much.
THE COURT: Thank you. Ladies and gentlemen,
6 we've been going an hour and a half. I think it would be a

7 good time for our afternoon break. We'll take a ten-minute
8 break. All rise for the jury, please.
(Recessed at 3:26 p.m.)
9
03:32:41PM
10
(The following was held out of the presence of the jury)
11
MR. THOMPSON: Your Honor, I think there is one
12 exhibit in our exchange that there's some pending

13 objections to that Mr. LoCascio said he's not sure he's
14 going to use it. So -03:38:36PM
15
THE COURT: When it comes up, we'll deal with
16 it.
17
18
MR. THOMPSON: Okay.

THE COURT: Okay. Everybody get a good grip on
19 their chairs, the jury wants to work from 7:30 to 4:00.

03:40:28PM
20 Sorry. That's what we'll do, though. So I don't know if

21 it's worth -- I don't know if it's worth our starting our
22 witness now or not.
23
MR. LOCASCIO: He won't finish, I can tell you
24 that, even if -- I can move pretty fast. I can't even

03:40:41PM
25 finish. My expectation is Mr. Scoulios' examination is

238
1 about an hour.
2
THE COURT: Well, let's get some of it out of
3 the way then. Yes. Okay.
03:40:52PM
MR. LOCASCIO: Yes.
MR. THOMPSON: Your Honor, I think the Rule's
6 has been invoked or -7
THE COURT: Do you want me to swear anybody in?
MR. LOCASCIO: No. We've cleaned -- other than
9 experts that we've agreed on, we've cleared -- I think, for

03:41:00PM
10 our witnesses, there's no fact witnesses in the room other

11 than corporate reps and experts.
12
THE COURT: Well, the other question is whether
13 you want me to swear them in and get them to come.
03:41:10PM
14
MR. LOCASCIO: No.
15
THE COURT: You don't want to do that.
16
MR. LOCASCIO: No.
17
THE COURT: All right.
18
MR. LOCASCIO. We've agreed -- Mr. Arnold and I
19 agreed yesterday.
03:41:13PM
20
THE COURT: Okay. Counsel, approach for a
21 moment, please.
22
03:41:39PM
(The following was held at the bench)
23
THE COURT: Okay. This is all on the record.
24
The juror who was from Exxon who told us
25 about working two jobs is apparently becoming a little bit

239
1 of a problem in the jury room. She's projecting very

2 negative vibes. I was pretty surprised nobody struck her,
3 and I'm just wondering if we shouldn't excuse her now.
4
03:41:57PM
MR. LOCASCIO: We're going to be here a long
5 time. We can talk about it, but my sense is if within an

6 hour and a half of our presentation, she's disruptive in
7 the jury room, I suggest we remove her, would be my
8 suggestion.
9
03:42:14PM
MR. BURGERT: I don't object to that.
10
MR. THOMPSON: Likewise.
11
MR. TORGERSON: Likewise.
12
MR. LOCASCIO: I'm loath to do it, but since we
13 have 12, I think we're -14

03:42:22PM
THE COURT: No. We built in some excess.
15 Okay. Let me figure out the best way to do it. That's why
16 I raised it with you folks. Okay.
17
03:42:52PM
(The following was held in open court)
18
THE COURT: We're ready for them.
19
CASE MANAGER: Okay.
20
MR. LOCASCIO: We mentioned, Your Honor, that
21 we agreed to do witness instructions, so I'm going to say a

22 couple of sentences.
23
24
03:44:10PM
THE COURT: All right.

I hope you'll caution your witnesses the
25 way I've tried to caution you, to please speak slowly. I

240
1 mean, when people get up on the appellate court and wonder

2 why something is not in the record, it's because people are
3 speaking too fast. Please -- please let them know. I know
4 they're nervous, but it's critical.
03:44:22PM
(The following was held before the jury)
THE COURT: Members of the jury, please be
7 seated. Those notebooks are for your use. You may take
8 them back in the jury room with you. You may mark them up
9 as you wish.
03:46:11PM
10
Okay. Now, nothing you've heard thus far
11 from the lawyers either this morning or this afternoon is

12 evidence. You get evidence when somebody takes an oath and
13 submits himself or herself to the penalty of perjury and
14 steps into that witness box. And that's the stage we've
03:46:30PM
15 now reached. We're now going to begin the presentation of

16 evidence.
17
18
Mr. LoCascio?
MR. LOCASCIO: Thank you, Your Honor.
19 WesternGeco calls Tom Scoulios as its first witness.

03:46:41PM
20
THE COURT: Sir, before you take your seat,
21 Mrs. Loewe will administer the oath. Would you raise your
22 right hand.
23
CASE MANAGER: Do you solemnly swear that the
24 testimony you are about to give will be the truth, the

03:47:01PM
25 whole truth and nothing but the truth?
Case 4:09-cv-01827 Document

427 Filed in TXSD Mr.
on 07/24/12
Page 65 of 98
Direct-Scoulios/By
LoCascio
241
THE COURT: Try to make yourself as comfortable
2 as possible and try to speak directly into the mike, if you

3 would.
4
03:47:06PM
MR. LOCASCIO: WesternGeco calls as its first
5 witness, Tom Scoulios. From 2008 to 2011, Mr. Scoulios was

6 the president of WesternGeco's U.S. business and regional
7 manager for all of North America. He was responsible for
8 over 1,000 WesternGeco employees and activities in the
9 United States and Canada.
03:47:26PM
10
Mr. Scoulios began working at WesternGeco
11 as a trainee on a research ship after he graduated from

12 Texas A&M in 1995. He's been with the company for 17
13 years.
14
03:47:40PM
WesternGeco calls Mr. Scoulios to explain
15 the history of WesternGeco, the background of serial

16 streamer systems like WesternGeco's, the real world
17 applications of this technology, and the impact of ION and
18 Fugro's infringement on the marketplace.
THOMAS SCOULIOS,
19
03:47:53PM
20 after having been first cautioned and duly sworn, testified

21 as follows:
DIRECT EXAMINATION
22
23 BY MR. LOCASCIO:
03:47:57PM
24 Q.
Good afternoon, Mr. Scoulios. How are you?
25 A.
Very good, thank you.

on 07/24/12
Page 66 of 98
Direct-Scoulios/By
LoCascio
1 Q.
Can you tell us a little bit about WesternGeco?
2 A.
WesternGeco is a geophysical service company. We
242
3 explore for oil and gas.
03:48:11PM
4 Q.
What's "geophysical" mean? What is that?
5 A.
Well, geo is the earth and physics are physics. So
6 we study the physics of the earth.

7 Q.
And where does WesternGeco operate here in the U.S.?
8 A.
WesternGeco, our North American headquarters is here
9 in Houston. It's at Beltway 8 and Richmond Avenue. We

03:48:29PM
10 have offices all over the U.S. We have offices all over
11 the world, but our North American presence is
12 headquartered here.
13 Q.
You said that you explore for oil and gas.
14
03:48:39PM
15 A.
Does WesternGeco drill for oil?
We do not drill for oil. We basically are the very
16 first step in the exploration process.

17 Q.
The jury heard earlier today something about
18 Schlumberger.
19
03:48:54PM
How is WesternGeco related to
20 Schlumberger?
21 A.
Schlumberger is the parent company of WesternGeco.
22 Schlumberger has lots of different arms, and we're the

23 geophysical arm. So we're the -- I guess the first branch
24 of the company.
03:49:02PM
25 Q.
Can you tell us go a little bit, sir, about the

on 07/24/12
Page 67 of 98
Direct-Scoulios/By
LoCascio
243
1 responsibilities you had with you were the president of

2 WesternGeco here in America?
3 A.
When I was managing the North American business, I
4 was in charge of all things that happened in North

03:49:14PM
5 America: The people, the operations. Granted we had a

6 lot of very talented people doing most of the work. It
7 ultimately fell in my lap if it was successful or not.
8 Q.
What sort of work does WesternGeco do here in North
9 America?
03:49:28PM
10 A.
WesternGeco conducts seismic surveys, and we process
11 seismic data and then deliver this product to our client.

12 As we do a good bulk of the work in offshore U.S. and the
13 Gulf of Mexico, we have our largest processing center in
14 the world based here in Houston, where we have a lot of
03:49:45PM
15 people and a lot of computers and we take this data.

16 Q.
Is WesternGeco's business only here in North America?
17 A.
No, sir. We're located all over the world.
18 Q.
And were you personally involved in any worldwide
19 activities?
03:49:58PM
20 A.
Yes, I was.
21 Q.
Can you explain a little bit about what activities
22 worldwide you had a role in?

23 A.
Well, in my career, I started in the field and worked
24 on lots of boats and field operations. So I've worked in

03:50:08PM
25 30 countries. In addition, when I got to come back to the

on 07/24/12
Page 68 of 98
Direct-Scoulios/By
LoCascio
244
1 states, I was a part of the management people. So I sat

2 on a group with all of my peers who ran other parts or the
3 world, and we would meet every week and discuss global
4 activities for the company.
03:50:22PM
5 Q.
Today you're in a different role. Can you tell us
6 what your role is today?

7 A.
Today I work for Schlumberger, which is WesternGeco's
8 parent company, and I'm a global account director.

9 Q.
03:50:35PM
So whereas previously you had a subject matter base
10 for WesternGeco, now you have a customer focus?

11 A.
Yes, sir.
12 Q.
And who is the customer?
13 A.
My customer is ConocoPhillips, so I'm the global
14 account director for Schlumberger's activities with

03:50:45PM
15 ConocoPhillips, including WesternGeco.

16 Q.
I'd like to talk a little bit and have you explain to
17 the jury a little bit about your background.

18
Can you tell the jury where you went to
19 school and where you grew up?

03:50:55PM
20 A.
I grew up in the Houston area, just in between
21 Houston and Galveston. I went to all my schooling here in

22 Friendswood, Texas, just south of here.
03:51:11PM
23 Q.
And where did you go to college?
24 A.
I went to Texas A&M University; but as I was studying
25 ocean sciences, they have a maritime academy in Galveston,

on 07/24/12
Page 69 of 98
Direct-Scoulios/By
LoCascio
245
1 Texas. So I attended university in Galveston at Texas

2 A&M.
03:51:26PM
3 Q.
How did you decide to focus on marine science?
4 A.
Well, my father was a ship's captain, my grandfathers
5 all went to sea, my uncles all went to sea. It was a bit

6 of a family thing to go to sea.
7 Q.
You didn't want to be a sailor?
8 A.
I would have loved to have been a sailor. My father
9 said he'd disown me if I would be a sailor. So he said,

03:51:43PM
10 Don't repeat what I did, so I went offshore as a

11 scientist.
03:51:50PM
12 Q.
And did you work while you were in college?
13 A.
I did.
14 Q.
What sort of stuff did you do?
15 A.
Well, I was a waiter, but I don't think that's
16 pertinent. But I also worked in the small boat basin, so

17 I was already familiar with boats. So I repaired the
18 boats, painted the boats, drove the boats. When the
19 biologists wanted to go look at fish, I would be one of
03:52:05PM
20 the crew that would man these boats. That was my first
21 introduction to seismic cable. In addition, as my father
22 was a former captain, before I committed to a life of
23 possibly living offshore, I did a four-month internship on
24 a chemical tanker to figure out if that was something I
03:52:21PM
25 could do successfully.

on 07/24/12
Page 70 of 98
Direct-Scoulios/By
LoCascio
1 Q.
What did you think?
2 A.
I ended up doing it for a living, so I -- it went
246
3 well.
4 Q.
03:52:30PM
After you graduated in 1995 with your degree in
5 marine seismic, what did you do?

6 A.
Well, I graduated in May of 1995, and in May of 1995,
7 I walked onto the back of a seismic boat.
03:52:46PM
8 Q.
And what was your first day like at the job?
9 A.
Well, I was hired as a geophysical trainee, which
10 sounded very glamourous. I was computers and physics.

11 But my first day was walking up to a seismic boat, and I
12 was told to put my bags down, and I spent the next 14
13 hours moving cable by hand onto the back of a seismic
14 boat.
03:52:59PM
15 Q.
Did you ultimately ship out?
16 A.
I did. We sailed out of Galveston, and we went out
17 to the Gulf of Mexico where I spent the next -- I spent 10

18 of the next 12 months in the Gulf of Mexico, 14 weeks
19 straight.
03:53:10PM
20 Q.
What else were your roles on the boat?
21 A.
I was part of the seismic crew, so we were called
22 observers. Geophysical trainees would bounce between

23 navigation and observing. But my job as an observer, so
24 we were in charge of the cable, we were in charge of the
03:53:26PM
25 data, we were in charge of the computers, we were in

on 07/24/12
Page 71 of 98
Direct-Scoulios/By
LoCascio
247
1 charge of how -- putting all that -- the streamers that

2 you mentioned earlier, putting all that gear out, putting
3 it back in and all the data we recorded.
4 Q.
03:53:37PM
Talked a little bit about cables.
What do these cables or streamers used
6 for?
7 A.
What we do is we create a three-dimensional image of
8 the subsurface. So underneath the water, there is dirt.

9 We create a 3D picture.
03:53:50PM
10 Q.
How is it that marine seismic streamers are able to
11 see underneath the surface?

12 A.
You mentioned we use a source. We use sound. So the
13 closest equivalent to what we do would be a sonogram. We

14 basically make a sound, and then we record where the sound
03:54:08PM
15 comes back, and we create a 3D picture. So like a doctor,

16 we use a sonogram. We use a geophysical crew, a seismic
17 crew.
18 Q.
Now, whereas the doctor would use a scalpel when it's
19 time to go in, what do you-all use?

03:54:22PM
20 A.
Well, we -- it's the drill bit. So the concept
21 behind it is relatively simple. A doctor doesn't want to

22 cut if he doesn't -- he or she doesn't have to cut. And
23 when they do cut, they want to make sure they cut in the
24 right place and cut as minimal as possible.
03:54:37PM
25
The exact same concept applies to oil and

on 07/24/12
Page 72 of 98
Direct-Scoulios/By
LoCascio
248
1 gas exploration. We go out there with a seismic crew,

2 which is our sonogram. We determine if there's somewhere
3 worth cutting, and if it is worth cutting, where do we
4 cut.
03:54:46PM
Now, the doctor's going to use a scalpel.
6 An oil and gas company, not us, will buy our data and then
7 use a drill bit. That is their scalpel.
8 Q.
Is it important to your customers, the oil and gas
9 companies, to give them this, if you will, data or

03:55:02PM
10 seismic?
11 A.
It's extremely important.
12 Q.
Why?
13 A.
In the Gulf of Mexico, oil and gas exploration is
14 very, very expensive. It's very, very difficult. The

03:55:10PM
15 average oil and gas exploratory well in the Gulf costs

16 about a hundred million dollars just to drill. Recent
17 averages for North America for the Gulf, they have about a
18 one in five success rate. So for every five wells they
19 drill, they might find something once.
03:55:25PM
20
So if they're going to spend $500 million
21 and miss four out of five times, they try to minimize that
22 risk. They try to drill in more accurate places, and when
23 they do find something, they want to make sure they get as
24 much as of that oil and gas onshore U.S. as possible.
03:55:41PM
25 Q.
You started talking about the ship and how it lays

on 07/24/12
Page 73 of 98
Direct-Scoulios/By
LoCascio
249
1 out the streamers.

2
Do you have some demonstratives to help
3 explain this to the jury?

4 A.
03:55:48PM
I do.
MR. LOCASCIO: Can we put up on the screen? I
6 think you have -- oh, you don't have a -7
May I approach the witness, Your Honor?
THE COURT: You may. You don't have to ask
9 permission, by the way, to approach your own witnesses.

03:55:58PM
10
MR. LOCASCIO: Thank you, Your Honor.
11
THE WITNESS: Thanks.
12
MR. LOCASCIO: Can we pull up Demo 1, please?
13 A.
So this first picture, I think if you click once
14 more, it goes to the next one, but this is basically what

03:56:14PM
15 a seismic crew is. It has three parts: There's a boat,

16 there's a cable, and there's a source.
17
So the source in our case is what we
18 use -- you're going to hear us talk about guns. We're

19 using airguns. What it does is it creates a large bubble.
03:56:28PM
20 That bubble creates a sound wave. That sound wave bounces

21 through the earth, and then we record it with our
22 streamers.
23
The streamers, as you mentioned earlier,
24 are long cables filled with microphones. They're in the

03:56:41PM
25 water, so we call them hydrophones. We're basically

on 07/24/12
Page 74 of 98
Direct-Scoulios/By
LoCascio
250
1 measuring the velocity of sound as it travels back.

2 BY MR. LOCASCIO:
3 Q.
Okay. Where is the streamer on this image we see on
4 the screen?
03:56:52PM
5 A.
The streamer is the long -- it's coming off the back
6 of the boat. I think you can see it. It moves to the

7 right end of the page, so it's the long red -- the long
8 red line.
9 Q.
03:57:01PM
Okay.
10
MR. LOCASCIO: Can you go to the next slide,
11 please.
12 BY MR. LOCASCIO:
03:57:08PM
13 Q.
Can you explain what we're seeing there?
14 A.
I mentioned geophysics earlier. This is geophysics
15 right here. So geo is the earth. That's the dirt and the
16 sediment and the oil and the gas and all the bits that are
17 below.
18
The physics is basically trying to
19 understand what this sound is doing. So we make this air

03:57:19PM
20 bubble. The air bubble then bounces -- it travels through

21 the water. It then enters the sediment, and it travels
22 through the sediment. As it hits different objects,
23 different sands, different rocks, coal, gas, salt, it
24 refracts and reflects back.
03:57:35PM
25
As it does, all the sound moves back at

on 07/24/12
Page 75 of 98
Direct-Scoulios/By
LoCascio
251
1 different frequencies. So you need very big computers,

2 and you need a very big cable array to capture this data
3 and try to make a picture.
03:57:49PM
4 Q.
Okay. What do we see on the next slide?
5 A.
The next slide is, once we have these data, we start
6 to look at the different velocities, and we can determine

7 well, the first one is sand or what type of sand, and
8 where are the shales and where is the oil and gas.
So what we're looking for is the red bit,
9
03:58:02PM
10 and what that is, is ultimately where oil and gas may be.
11 We do not find the oil and gas itself. We find out where
12 it could be.
13 Q.
14
03:58:14PM
Thank you.
MR. LOCASCIO: Now if we could turn to Slide 4
15 we put together.
16 BY MR. LOCASCIO:
17 Q.
What are we looking although here?
18 A.
So in 4D -- I'm sorry -- 2D, you basically -- I heard
19 people talk about 2D, 3D, 4D. So 2D is where you have one
03:58:26PM
20 cable. And the simplest analogy is two dimensions, XY.

21 It's a piece of paper.
22
So in this case, if you go to the next
23 slide, what we're imaging is simply a very thin sheet of

24 paper of what is underneath the subsurface.
03:58:40PM
25 Q.
Okay. And that's a 2D surveys?

on 07/24/12
Page 76 of 98
Direct-Scoulios/By
LoCascio
1 A.
That is correct.
2 Q.
Are there also 3D surveys?
3 A.
Yeah. If you go to the next slide, there are 3D
252
4 surveys. But in a 2D survey, you see hydrocarbons or oil

03:58:52PM
5 and gas or oil and gas could be. Now, what you know is
6 that there might be some there. You don't know if it's
7 10 miles wide. You don't know if it ends three feet past
8 your sonogram. So a 2D survey is relatively useful, but a
9 3D survey is going to be more useful. As 2D sheet of
03:59:12PM
10 paper, 3D is a like a fish tank. It's a cube. You start

11 to create an image.
12
MR. LOCASCIO: Can you show the 3D?
13
Thank you.
14 BY MR. LOCASCIO:
03:59:20PM
15 Q.
Explain to the jury what we're seeing now for the 3D
16 survey.
17 A.
So in order to inquire 3D data, you put a lot more of
18 these cables out.

19
03:59:30PM
Now, these cables in this particular
20 example, this vessel is pulling 10 cables or 10 streamers.

21 We're going to use those words back and forth a lot. So
22 these are going to be five, six miles long, sometimes
23 longer, sometimes shorter, and they're going to be about
24 on average about 333 feet apart. So they're going to be
03:59:47PM
25 about a football field apart, and they might be, you know,

on 07/24/12
Page 77 of 98
Direct-Scoulios/By
LoCascio
253
1 80 football fields long. So it's a massive amount of -2 it's basically a very large microphone.
3 Q.
And with the 3D survey, you mentioned the fish tank
4 andrology.
03:59:59PM
MR. LOCASCIO: Can we see the next slide,
6 please?
7 BY MR. LOCASCIO:
04:00:11PM
8 Q.
Can you explain what image you can get back from it?
9 A.
So you start to understand if the red bit is where
10 oil and gas could be, you start to understand that, if you
11 just had the 2D image, the red bit on the left on the
12 screen and the red bit on the right of the screen would
13 appear the same.
14
04:00:24PM
When you get a 3D image, you understand,
15 Well, I'm not going to waste my time on the small one.

16 There's a large oil field or a gas field or hydrocarbon,
17 and that's what we're going to go after.
18
THE COURT: Ladies and gentlemen, I was told
19 that you would like to break at 4:00. Is that right? So

04:00:36PM
20 are you ready to go? Okay.

21
As you requested, we'll resume at 7:30 in
22 the morning. We will have coffee and breakfast pastries

23 waiting for you. Please do try to be prompt. Unless all
24 of you are here, none of us can do anything.
04:00:53PM
25
Would all please rise for the jury.

254
(The following was held out of the presence of the jury)
THE COURT: Please be seated. You may step
3 down, sir.
4
04:01:35PM
Our trial schedule gets less and less
5 inviting. The jurors also want 30-minute lunches. I've

6 never seen this before. They are going to pay themselves
7 to bring -- to have food indicated to them. So they're
8 very serious.
9
04:01:49PM
MR. LOCASCIO: Well, I know there has been a
10 discussion of providing cab fare. I expect the parties to

11 collectively pay that if -12
THE COURT: Well, why don't y'all talk.
13 I'll --
04:02:00PM
14
MR. TORGERSON: Sure.
15
MR. LOCASCIO: Of course.
16
THE COURT: Okay. Is there anything else we
17 need to talk about before we adjourned?

18
MR. LOCASCIO: No. If we have any issues we
19 need to raise with a 7:30 start.

04:02:07PM
20
THE COURT: Well, I'd really rather we get into
21 a pattern of raising issues at the end of the day before

22 rather than at the beginning of the next day.
23
MR. LOCASCIO: I have one I'll raise now, Your
24 Honor, which is Mr. Torgerson's opening, what I heard was

04:02:19PM
25 what I would contend is that we have our own patent

255
1 defense. It's not a defense under the law.

2
To the extent they want to talk about
3 their development story, so be it. The waving around of

4 how many patents they have, Your Honor, we think their case
04:02:32PM
5 is talking about that you don't get to defend a patent case

6 by saying that you have your own patent, because it would
7 be confusing to the jury. It's a 403 issue. We can brief
8 it. I don't expect it's going to come up with
9 Mr. Scoulios.
04:02:43PM
10
THE COURT: Well, let me get Mr. Torgerson's
11 response.
12
MR. TORGERSON: Just telling a story about the
13 history of innovation at ION, which was the schematic of

14 the entire opening. He knows it's not a prior art defense.
04:02:55PM
15 He knows it's not an noninfringement defense. And it

16 hasn't been asserted that way. It's just part of the
17 dramatic story.
18
MR. LOCASCIO: I know it's not an
19 noninfringement defense. The question is: Will the jury

04:03:04PM
20 ultimately be able to distinguish. To point out these

21 birds are covered by our own patents has no relevance to
22 the issues in this case, Your Honor, none other than to
23 confuse the jury and point out that they think the jury
24 will take away the observation impression that it can't be
04:03:16PM
25 infringement because it's got its own patent.

256
MR. TORGERSON: Let me slice it finer.
Mr. LoCascio, in his opening, said, We
3 invented lateral steering. Our patents cover the entirety

4 of lateral steering. And that's not true.
04:03:30PM
And if their -- if the jury has been left
6 with the false impression, the misapprehension, that any

7 lateral steering device or anything that performs lateral
8 steering necessarily fringes their patent, that's
9 essentially what they've tried to set out. And that's what
04:03:46PM
10 we're rebutting in part as well.

11
MR. LOCASCIO: There's a core difference there.
12 The patents in this case, our patents, the Court has

13 construed, and they're going to be asked to look at that
14 construction and evaluate it.
04:03:56PM
15
The patents Mr. Torgerson is waving around
16 are not in this and have never been construed.

17
THE COURT: Okay. Well, to the extent there
18 has been lack of clarity on either of those two points, I

19 will -- I'll strive mightily to take care of it in my
04:04:09PM
20 instructions.
21
22
Yes, sir?
MR. ARNOLD: I've got my own, Your Honor. It's
23 a relatively minor point, but I think it's important

24 sometimes to bring these up early. I don't think that,
04:04:21PM
25 given where the jury was -- what was being talked about at

257
1 the time, it was worth an objection. But they put a slide

2 up that said the U.S. waters cover the entire Gulf of
3 Mexico and half the Atlantic. And in this case, where
4 we've got the EEZ issue, I think that is something that
04:04:38PM
5 needs to be nipped in the bud rather quickly.

6
MR. LOCASCIO: We can look. I'm not sure what
7 slide Mr. Arnold is referring to.
04:04:48PM
MR. TORGERSON: It had a white dot --
MR. ARNOLD: The white dot that had U.S. waters
10 and international waters, when you were talking about

11 swapping the labels.
12
THE COURT: I think it was potentially
13 misleading.
14
04:05:01PM
Are you asking for me to make a corrective
15 instruction now?
16
MR. ARNOLD: Not at the moment, Your Honor. I
17 think it would highlight it. I think it's a question of -18 in a way that it doesn't need to be, but I think it's a
19 question of the next time it comes up -04:05:10PM
20
THE COURT: We'll --
21
MR. ARNOLD: -- it will be rather disturbing to
22 the jury. And I think -23
THE COURT: Well, we should avoid that. I
24 agree. That's already been settled in this case.

04:05:19PM
25
Anything further?

258
MR. LOCASCIO: Not from WesternGeco, Your
2 Honor.
3
THE COURT: All right. Thank you very much.
(Recessed at 4:05 p.m.)
COURT REPORTER'S CERTIFICATE
6
7 I, Johnny C. Sanchez, certify that the foregoing is a correct
8 transcript from the record of proceedings in the
9 above-entitled matter.
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
/s/_________________________
Johnny C. Sanchez, CRR, RMR

259
#
#8016 [1] - 178:19
$
$1.50 [1] - 191:25
$13 [2] - 196:13, 207:8
$150 [2] - 200:21, 226:25
$159 [1] - 206:20
$20,000 [1] - 207:2
$50 [2] - 196:11, 200:22
$500 [1] - 248:20
'
'038 [1] - 222:11
'08 [1] - 232:7
'520 [5] - 199:12, 200:5, 213:10,
213:14, 226:14
/
/s [1] - 258:10
20 [4] - 196:11, 200:19, 200:22, 216:15

200 [2] - 194:19, 196:14
20005 [1] - 177:20
2001 [1] - 229:18
2003 [2] - 218:24, 219:6
2004 [2] - 217:1, 222:8
2005 [1] - 222:8
2006 [3] - 185:22, 222:9, 223:10
2007 [3] - 182:7, 229:21
2008 [3] - 223:24, 224:4, 241:5
2010 [2] - 209:17, 209:24
2011 [1] - 241:5
2012 [1] - 177:7
202.879.5290 [1] - 177:21
207 [2] - 206:4, 206:14
212.446.6435 [1] - 177:25
23 [1] - 177:7
2300 [1] - 177:16
241 [1] - 179:5
25 [8] - 206:7, 206:14, 206:16, 206:20,
227:1, 229:23, 231:4, 231:7
2:01 [1] - 177:6
2D [13] - 189:16, 189:17, 189:19,
190:1, 251:18, 251:19, 251:25, 252:4,
252:8, 252:9, 253:11
3
0
09-CV-1827 [1] - 177:4
1
1 [2] - 177:9, 249:12
1,000 [1] - 241:8
1.8 [1] - 197:14
10 [10] - 193:12, 195:24, 196:11, 200:4,
214:1, 228:21, 246:17, 252:7, 252:20
1000 [1] - 178:6
10022 [1] - 177:25
12 [6] - 187:3, 193:12, 227:13, 227:15,
239:13, 246:18
14 [2] - 246:12, 246:18
153 [1] - 177:24
17 [1] - 241:12
18 [4] - 199:12, 213:10, 226:14, 226:18
182 [1] - 206:22
1970's [1] - 215:6
1970s [1] - 215:3
1980 [1] - 218:8
1990 [1] - 218:9
1990s [1] - 216:23
1993 [1] - 219:5
1994 [1] - 217:7
1995 [5] - 217:8, 241:12, 246:4, 246:6
1998 [2] - 216:6, 226:20
2
2.2 [1] - 197:14
3 [2] - 206:7, 207:7

30 [1] - 243:25
30-minute [1] - 254:5
319-plus-million [1] - 206:17
333 [1] - 252:24
36th [1] - 178:6
3:26 [1] - 237:9
3D [25] - 189:24, 190:3, 190:7, 190:8,
190:10, 191:1, 202:21, 203:23, 204:23,
215:7, 215:17, 215:18, 247:9, 247:15,
251:19, 252:2, 252:3, 252:9, 252:10,
252:12, 252:15, 252:17, 253:3, 253:14
4
4 [1] - 251:14
40 [3] - 196:11, 229:18, 229:20
403 [1] - 255:7
45 [1] - 181:3
4900 [1] - 178:12
4:00 [2] - 237:19, 253:19
4:05 [1] - 258:4
4D [9] - 190:13, 190:23, 191:4, 191:15,
203:23, 215:17, 215:18, 251:18, 251:19
5
50 [4] - 190:16, 190:17, 190:18
500 [1] - 178:16
515 [1] - 178:19
53rd [1] - 177:24
6
6 [9] - 182:2, 187:3, 187:7, 187:10,
187:23, 188:5, 188:13, 191:14, 194:17
6-mile [1] - 192:2
610 [2] - 187:1, 187:3
62 [1] - 202:21
655 [1] - 177:20
7
700 [1] - 177:16
711 [1] - 178:16
713.221.2300 [1] - 177:17
713.226.6694 [1] - 178:7
713.250.5581 [1] - 178:20
713.890.3218 [1] - 178:17
77002 [4] - 177:17, 178:7, 178:16,
178:20
77056 [1] - 178:13
7:30 [3] - 237:19, 253:21, 254:19
8
8 [1] - 242:9
80 [1] - 253:1
9
900 [1] - 178:12
A
A&M [3] - 241:12, 244:24, 245:2
ability [2] - 192:13, 222:24
able [10] - 190:7, 190:20, 191:9, 195:5,
195:15, 202:15, 211:14, 227:7, 247:10,
255:20
above-entitled [1] - 258:9
academy [1] - 244:25
accept [1] - 226:7
access [1] - 186:20
accord [1] - 186:19
account [2] - 244:8, 244:14
accurate [1] - 248:22
accusation [3] - 223:2, 223:14, 224:3
accusations [1] - 224:10
accused [2] - 208:16, 227:11
accuses [2] - 216:4, 218:21
accusing [2] - 231:10, 232:6
acoustic [1] - 216:12
act [2] - 227:19, 236:13
acted [1] - 234:14
activities [5] - 241:8, 243:19, 243:21,
244:4, 244:14
activity [1] - 235:6
add [3] - 188:7, 203:15, 235:13
addition [2] - 243:25, 245:21
address [2] - 221:21, 221:25

260
addressed [2] - 208:13, 233:21
adequately [2] - 215:17, 231:2
adjourned [1] - 254:17
administer [1] - 240:21
admits [1] - 229:2
advanced [1] - 194:9
advantage [1] - 186:19
advantages [1] - 212:18
advertised [1] - 230:22
advertisements [1] - 196:23
advise [2] - 181:4, 209:7
afternoon [4] - 212:15, 237:7, 240:11,
241:24
Afternoon [1] - 177:10
aggressively [1] - 203:5
ago [2] - 190:17, 190:18
agree [3] - 180:11, 186:10, 257:24
agreed [6] - 186:8, 221:25, 238:9,
238:18, 238:19, 239:21
agreement [2] - 186:18, 221:13
aimed [1] - 190:19
air [3] - 188:21, 250:19, 250:20
airguns [1] - 249:19
AL [1] - 177:7
alarm [1] - 183:8
algorithms [1] - 218:14
allow [4] - 180:4, 180:12, 182:3, 186:1
allowed [4] - 180:16, 180:19, 180:21,
211:23
allows [7] - 193:20, 193:23, 195:2,
195:14, 195:20, 196:4, 233:6
almost [4] - 187:12, 197:14, 223:13,
230:24
America [6] - 241:7, 243:2, 243:5,
243:9, 243:16, 248:17
American [4] - 212:16, 242:8, 242:11,
243:3
amount [4] - 196:5, 228:10, 228:23,
253:1
analogy [2] - 215:11, 251:20
analysis [1] - 213:11
Andre [1] - 216:21
andrology [1] - 253:4
angle [4] - 191:11, 195:12, 200:1,
226:19
answer [2] - 220:11, 221:22
Anthony [1] - 178:11
anticipates [2] - 226:10, 226:22
anyway [1] - 198:20
Apache [2] - 203:20, 203:22
apart [4] - 213:17, 228:23, 252:24,
252:25
apologies [1] - 181:1
apparatus [1] - 231:15
appear [1] - 253:13
appearance [1] - 181:2
APPEARANCES [1] - 177:13
appellate [1] - 240:1
applications [2] - 201:17, 241:17
applies [1] - 247:25
apply [1] - 226:1
approach [3] - 238:20, 249:7, 249:9
area [3] - 200:13, 231:12, 244:20

argument [2] - 211:2, 211:25
arm [1] - 242:23
arm's [1] - 220:21
arms [1] - 242:22
Arnold [5] - 178:10, 233:15, 233:16,
238:18, 257:7
ARNOLD [6] - 178:11, 233:16, 256:22,
257:9, 257:16, 257:21
arrangement [1] - 217:9
array [5] - 186:24, 188:25, 194:19,
215:24, 251:2
arrays [1] - 187:2
arrive [2] - 217:13, 218:10
arrives [1] - 228:13
art [3] - 226:9, 235:17, 255:14
article [1] - 209:9
articles [1] - 228:17
aspirational [1] - 221:14
aspiring [1] - 184:19
asserted [1] - 255:16
assessments [1] - 204:25
assistance [1] - 217:17
assisted [1] - 178:22
associated [1] - 227:1
assorted [1] - 214:1
assurance [1] - 208:15
assure [2] - 210:4, 233:8
Atlantic [1] - 257:3
attended [1] - 245:1
attention [1] - 193:2
automatically [2] - 213:25, 217:25
available [1] - 229:15
Avenue [1] - 242:9
average [4] - 196:13, 207:8, 248:15,
252:24
averages [1] - 248:17
avoid [4] - 195:18, 196:6, 210:24,
257:23
avoiding [1] - 192:12
award [1] - 229:6
B
backbone [1] - 212:16
backed [1] - 201:11
background [2] - 241:15, 244:17
bags [1] - 246:12
bait [1] - 191:25
bar [1] - 188:1
base [1] - 244:9
based [3] - 218:14, 231:22, 243:14
basin [1] - 245:16
basket [1] - 221:10
bear [1] - 226:3
bears [2] - 225:18, 232:2
became [1] - 218:23
becoming [4] - 184:17, 184:18,
203:17, 238:25
bed [1] - 221:21
BEFORE [1] - 177:11
began [1] - 241:10

begin [2] - 181:13, 240:15
beginning [3] - 198:24, 223:3, 254:22
behalf [2] - 214:10, 233:12
behind [9] - 182:2, 184:17, 184:21,
185:9, 185:11, 187:7, 188:14, 195:11,
247:21
believes [1] - 225:7
bell [1] - 183:8
belong [2] - 182:23, 186:22
belongs [1] - 213:7
below [1] - 250:17
Beltway [1] - 242:9
bench [1] - 238:22
beneficial [1] - 186:10
benefit [4] - 192:12, 196:21, 200:12,
202:9
benefits [4] - 201:6, 202:6, 212:17,
222:13
best [2] - 234:7, 239:15
better [11] - 183:15, 184:14, 185:18,
190:10, 196:6, 196:7, 204:22, 209:11,
212:23, 220:8, 230:8
between [9] - 186:11, 219:17, 220:19,
222:20, 225:13, 228:10, 232:10,
244:20, 246:22
beyond [2] - 225:9, 225:12
bid [5] - 204:10, 219:20, 221:2, 229:14,
230:9
bidding [2] - 204:17, 221:6
bids [5] - 206:9, 228:22, 229:11, 230:1,
230:6
big [9] - 181:17, 185:2, 188:19, 192:23,
194:10, 195:23, 203:20, 251:1, 251:2
billion [2] - 206:7, 207:7
biologists [1] - 245:19
bird [6] - 194:6, 194:11, 230:23, 231:8,
236:12
birds [6] - 194:4, 194:5, 194:20,
216:11, 235:3, 255:21
bit [24] - 186:23, 188:9, 191:8, 191:16,
193:2, 194:1, 195:12, 201:14, 203:8,
215:22, 238:25, 242:1, 242:25, 243:21,
244:16, 244:17, 245:5, 247:4, 247:20,
248:7, 251:9, 253:9, 253:11, 253:12
bits [1] - 250:16
Bittleston [2] - 201:8
blame [3] - 229:24, 229:25
blessed [1] - 224:14
block [1] - 190:16
blue [2] - 185:14, 199:25
boat [16] - 187:11, 187:16, 191:20,
192:16, 192:20, 193:14, 217:25,
219:21, 229:15, 245:16, 246:7, 246:11,
246:14, 246:20, 249:15, 250:6
boats [9] - 218:3, 222:22, 230:9,
243:24, 245:17, 245:18, 245:20
boiled [1] - 184:7
bottom [10] - 184:23, 189:4, 192:18,
196:24, 199:25, 202:20, 203:22,
207:23, 209:6, 220:17
bought [5] - 201:2, 216:6, 234:7,

261
234:8, 236:21
bounce [3] - 189:3, 189:9, 246:22
bounces [3] - 189:5, 249:20, 250:20
boundaries [2] - 198:12, 199:12
box [3] - 185:2, 194:10, 240:14
Boy [1] - 215:11
brain [1] - 194:12
brakes [1] - 188:3
branch [1] - 242:23
break [5] - 202:14, 225:1, 237:7,
237:8, 253:19
breakfast [1] - 253:22
brief [1] - 255:7
bring [2] - 254:7, 256:24
broadly [1] - 215:16
broken [1] - 225:1
brought [2] - 233:19, 233:22
bubble [5] - 188:25, 249:19, 249:20,
250:20
bud [1] - 257:5
budget [1] - 193:19
build [2] - 219:25, 220:2
building [1] - 209:12
built [3] - 212:23, 220:13, 239:14
bulk [1] - 243:12
bump [1] - 185:12
burden [4] - 225:18, 226:4, 226:7,
232:2
Burgert [1] - 178:1
BURGERT [2] - 180:15, 239:9
business [18] - 182:16, 184:14, 186:4,
186:11, 196:8, 197:22, 204:3, 204:5,
217:9, 217:16, 219:17, 220:20, 220:21,
222:1, 230:18, 241:6, 243:3, 243:16
buy [4] - 203:12, 223:20, 235:2, 248:6
buying [4] - 208:14, 208:17, 209:19,
221:7
BY [7] - 179:5, 241:23, 250:2, 250:12,
251:16, 252:14, 253:7
C
cab [2] - 189:12, 254:10
cable [8] - 194:8, 197:25, 245:21,
246:13, 246:24, 249:16, 251:2, 251:20
cables [6] - 247:4, 247:5, 249:24,
252:18, 252:19, 252:20
calculations [1] - 235:11
Canada [1] - 241:9
candid [2] - 200:24, 204:25
candidly [1] - 202:25
cannot [1] - 198:13
capability [1] - 214:24
capable [1] - 219:21
capacity [1] - 220:2
caps [1] - 205:6
captain [2] - 245:4, 245:22
capture [1] - 251:2
car [3] - 187:25, 188:3, 188:13
care [2] - 210:13, 256:19
career [1] - 243:23
carefully [3] - 217:12, 225:11, 228:13

cares [1] - 205:16
carlot [1] - 229:16
CASE [4] - 181:6, 181:9, 239:19,
240:23
case [28] - 181:17, 181:18, 184:7,
185:8, 187:2, 193:22, 196:13, 197:19,
197:21, 209:13, 209:23, 212:4, 212:8,
212:18, 217:15, 232:19, 233:5, 233:18,
233:25, 234:14, 249:17, 251:22, 255:4,
255:5, 255:22, 256:12, 257:3, 257:24
casually [1] - 180:25
caught [5] - 183:3, 183:12, 183:16,
207:14, 209:14
caused [3] - 227:20, 233:1, 233:2
causes [1] - 192:16
caution [2] - 239:24, 239:25
cautioned [1] - 241:20
cavern [1] - 190:18
cellphone [1] - 201:22
cellphones [1] - 201:21
center [1] - 243:13
Center [1] - 177:24
certainly [3] - 180:11, 195:12, 214:7
CERTIFICATE [1] - 258:5
certify [1] - 258:7
chairs [1] - 237:19
challenge [1] - 226:6
change [2] - 207:17, 208:9
changed [7] - 190:20, 190:24, 191:10,
208:8, 210:12, 210:16, 223:24
changes [1] - 185:6
charge [6] - 207:2, 243:4, 246:24,
246:25, 247:1
charged [1] - 230:2
cheaper [1] - 203:9
checking [1] - 180:1
chemical [1] - 245:24
chill [1] - 213:2
chip [2] - 201:19
choice [1] - 183:19
choices [1] - 183:14
choosing [1] - 180:8
circle [1] - 220:16
circumstances [1] - 189:16
cited [2] - 211:9, 221:13
Citigroup [1] - 177:24
city [1] - 187:1
Claim [2] - 226:14, 226:18
claim [14] - 199:12, 199:17, 200:3,
212:1, 213:9, 213:10, 213:25, 214:8,
225:8, 225:23, 225:24, 231:18, 236:20
claimed [1] - 224:23
claiming [1] - 226:11
claims [12] - 182:20, 199:11, 200:4,
200:5, 200:16, 202:2, 208:1, 212:1,
214:1, 215:16, 231:10, 231:13
clarity [1] - 256:18
clean [1] - 193:15
cleaned [1] - 238:8
clear [6] - 199:23, 214:14, 221:11,
225:14, 226:4, 227:25
cleared [1] - 238:9

clearly [1] - 213:17
click [1] - 249:13
client [5] - 196:24, 212:23, 216:8,
224:15, 243:11
close [2] - 180:12, 232:24
closely [3] - 217:3, 222:4, 225:10
closer [1] - 196:18
closest [1] - 247:13
closing [1] - 211:25
coal [1] - 250:23
coast [1] - 227:18
coffee [2] - 228:16, 253:22
collaboration [2] - 182:15, 220:19
colleagues [2] - 184:4, 217:18
collectively [1] - 254:11
college [2] - 244:23, 245:12
combined [2] - 227:22, 227:23
comfortable [2] - 230:13, 241:1
coming [2] - 183:21, 250:5
command [1] - 219:1
commercially [1] - 223:4
committed [1] - 245:22
commodified [1] - 184:18
common [2] - 213:21, 226:1
communicates [1] - 219:2
companies [22] - 186:11, 191:18,
196:10, 200:10, 201:16, 202:6, 203:15,
206:6, 212:17, 220:13, 220:15, 221:9,
221:12, 221:19, 227:2, 229:5, 230:6,
230:14, 230:15, 230:17, 232:20, 248:9
company [35] - 186:8, 189:23, 190:11,
190:24, 192:7, 195:5, 198:9, 201:11,
203:20, 204:19, 208:7, 210:4, 212:5,
216:4, 216:6, 218:22, 219:24, 220:11,
222:25, 224:6, 227:7, 228:18, 228:25,
229:3, 229:6, 229:7, 235:3, 241:12,
242:2, 242:21, 242:24, 244:4, 244:8,
248:6
compasses [1] - 216:11
compete [5] - 182:15, 202:15, 202:22,
203:3, 212:17
competes [1] - 221:8
competing [3] - 220:8, 227:2, 228:2
competition [5] - 182:9, 212:15, 213:5,
224:9, 231:5
competitive [3] - 186:19, 222:5, 234:1
competitor [3] - 185:23, 197:25, 231:6
competitors [3] - 230:3, 232:20, 233:9
complex [2] - 235:24, 236:11
component [1] - 186:7
components [3] - 224:16, 227:21,
234:4
comprehend [1] - 187:13
computer [5] - 178:22, 184:25, 185:4,
194:9, 219:2
computer-assisted [1] - 178:22
computers [4] - 243:15, 246:10,
246:25, 251:1
computing [1] - 189:11
concept [5] - 190:23, 214:14, 218:25,
247:20, 247:25

262
Concept [2] - 218:22, 218:24
concept's [1] - 219:6
concern [2] - 207:17, 207:19
concerned [1] - 207:16
concerns [2] - 208:13, 232:4
concise [1] - 181:5
conduct [1] - 229:22
conducting [1] - 234:2
conducts [1] - 243:10
confident [1] - 232:24
confidential [1] - 209:3
confronted [1] - 224:5
confuse [1] - 255:23
confusing [1] - 255:7
Congress [1] - 199:4
connected [1] - 194:7
ConocoPhillips [2] - 244:13, 244:15
consider [1] - 211:7
considered [2] - 180:9, 217:1
conspiracy [1] - 234:12
constantly [1] - 194:13
Constitution [2] - 198:25, 199:3
construction [1] - 256:14
construed [2] - 256:13, 256:16
contend [2] - 229:7, 254:25
contender [1] - 219:15
contends [1] - 226:24
context [1] - 189:1
continue [2] - 210:24, 211:21
contract [1] - 208:19
contractor [3] - 229:4, 230:16
contractors [2] - 219:19, 223:20
contracts [2] - 203:16, 230:17
contractual [1] - 221:24
contrary [1] - 236:15
contrast [2] - 216:3, 219:23
control [22] - 186:12, 186:13, 188:11,
195:21, 195:25, 196:17, 199:20, 200:2,
200:13, 204:21, 214:15, 215:4, 216:11,
216:22, 217:22, 219:1, 222:14, 226:18,
226:19, 230:21, 231:2
controlled [1] - 217:25
controller [1] - 194:8
controlling [1] - 216:23
controls [1] - 228:9
conveniently [1] - 187:1
convention [1] - 228:16
conventional [1] - 185:9
conversations [1] - 232:1
convincing [1] - 226:4
core [2] - 198:23, 256:11
corners [1] - 195:14
corporate [1] - 238:11
CORPORATION [2] - 177:6, 178:1
correct [2] - 252:1, 258:7
corrective [1] - 257:14
cost [5] - 192:9, 197:13, 204:12,
204:14, 206:17
costs [3] - 192:10, 195:20, 248:15
counsel [2] - 212:14, 238:20
countries [1] - 243:25
country [2] - 227:18, 227:19
couple [4] - 194:13, 230:2, 233:19,

239:22
course [2] - 197:19, 254:15
COURT [47] - 177:1, 180:1, 180:17,
180:21, 181:8, 181:11, 181:16, 208:22,
208:24, 211:11, 212:10, 212:14,
215:21, 216:13, 222:18, 227:3, 231:4,
233:14, 237:5, 237:15, 237:18, 238:2,
238:7, 238:12, 238:15, 238:17, 238:20,
238:23, 239:14, 239:18, 239:23, 240:6,
240:20, 241:1, 249:8, 253:18, 254:2,
254:12, 254:16, 254:20, 255:10,
256:17, 257:12, 257:20, 257:23, 258:3,
258:5
Court [8] - 178:18, 182:17, 183:9,
200:3, 212:13, 227:14, 233:8, 256:12
court [4] - 205:21, 213:2, 239:17,
240:1
courthouse [2] - 187:5, 187:20
cover [6] - 181:23, 208:4, 214:13,
229:13, 256:3, 257:2
covered [1] - 255:21
create [5] - 186:11, 247:7, 247:9,
247:15, 252:11
created [2] - 202:23, 203:1
creates [2] - 249:19, 249:20
crew [6] - 245:20, 246:21, 247:16,
247:17, 248:1, 249:15
crews [1] - 230:9
critical [1] - 240:4
CRR [2] - 178:19, 258:11
cube [2] - 190:8, 252:10
cuffs [1] - 217:23
current [2] - 192:4, 194:17
currents [1] - 194:23
customer [9] - 206:14, 216:16, 220:20,
220:22, 220:23, 223:7, 244:10, 244:12,
244:13
customers [21] - 182:8, 183:5, 184:19,
185:18, 195:17, 196:8, 196:20, 197:8,
202:9, 202:14, 202:18, 203:6, 203:10,
203:12, 203:19, 204:2, 205:24, 217:3,
218:4, 219:12, 248:8
customers' [1] - 219:11
cut [9] - 191:24, 192:1, 199:2, 247:22,
247:23, 247:24, 248:4
cutting [5] - 184:20, 192:1, 201:24,
248:3
D
damage [1] - 192:9
damages [7] - 214:4, 226:24, 228:6,
229:10, 234:24, 235:8, 235:12
dark [1] - 232:13
data [14] - 196:2, 220:11, 228:14,
230:13, 230:14, 243:11, 243:15,
246:25, 247:3, 248:6, 248:9, 251:2,
251:5, 252:17
Daubert [1] - 180:11
David [1] - 178:1
days [3] - 197:13, 197:15, 207:4
DC [1] - 177:20
deal [4] - 186:2, 191:18, 199:1, 237:15
decide [5] - 198:20, 200:5, 211:24,
212:25, 245:3
decided [4] - 182:17, 183:10, 204:1,
211:16
decides [1] - 229:3
decision [1] - 186:3
decisions [3] - 205:11, 213:1, 229:5
deck [1] - 187:9
decline [1] - 233:3
decrease [1] - 232:25
deed [2] - 198:11, 224:20
deep [1] - 225:12
defend [1] - 255:5
defendants [3] - 180:6, 180:10, 207:6
defending [2] - 223:12, 233:10
defense [6] - 233:13, 255:1, 255:14,
255:15, 255:19
definable [1] - 203:15
degree [1] - 246:4
delay [1] - 212:12
deliver [1] - 243:11
Demo [1] - 249:12
demonstratives [1] - 249:2
denser [1] - 196:17
depleted [1] - 191:16
deploy [4] - 195:6, 216:17, 229:12,
230:24
deposit [2] - 189:20, 189:22
deposition [1] - 180:7
depth [3] - 216:11, 217:21, 231:3
described [2] - 202:17, 224:19
describes [3] - 198:12, 199:12, 206:10
design [4] - 215:20, 220:24, 223:19,
231:17
designed [4] - 213:8, 219:14, 231:17,
235:22
designs [2] - 217:2, 219:18
desk [1] - 185:2
despite [4] - 205:15, 207:8, 208:12,
210:25
detail [2] - 199:14, 236:25
detailed [1] - 222:12
details [3] - 220:24, 225:16, 225:17
detect [1] - 189:18
determine [2] - 248:2, 251:6
develop [4] - 184:1, 186:12, 199:8,
201:11
developed [6] - 181:20, 217:1, 217:19,
218:8, 218:15, 231:21
developing [1] - 216:22
development [4] - 199:10, 221:13,
222:7, 255:3
device [21] - 186:13, 186:15, 194:6,
217:20, 217:22, 218:2, 218:6, 218:10,
220:2, 220:8, 220:24, 223:18, 223:20,
227:8, 230:21, 230:24, 231:2, 231:16,
231:21, 256:7
devices [12] - 188:11, 194:2, 194:3,
214:15, 214:19, 214:23, 215:4, 216:22,
217:19, 218:7, 228:2

263
difference [1] - 256:11
differences [2] - 225:13, 225:17
different [22] - 191:11, 194:22, 194:23,
199:17, 201:25, 210:12, 212:19,
212:23, 220:8, 220:13, 220:14, 221:10,
225:4, 225:11, 242:22, 244:5, 250:22,
250:23, 251:1, 251:6
differently [3] - 194:24, 213:8
differs [1] - 231:17
difficult [2] - 218:10, 248:14
Digi [1] - 230:23
DigiBIRD [2] - 217:21
DigiCOURSE [4] - 216:5, 216:10,
216:20, 218:24
DigiFIN [24] - 186:12, 186:14, 196:16,
202:14, 202:21, 203:21, 204:22, 209:5,
216:25, 218:5, 220:23, 222:6, 222:12,
223:17, 223:20, 224:7, 227:6, 228:3,
229:21, 229:24, 231:24
DigiFIN's [1] - 228:9
DigiFINs [3] - 209:8, 210:4, 228:11
digital [1] - 204:21
DigiWING [1] - 222:8
dimension [1] - 190:14
dimensional [5] - 234:2, 235:19,
235:20, 235:21, 247:7
dimensions [1] - 251:20
DIRECT [2] - 179:5, 241:22
direction [2] - 189:22, 190:19
directions [1] - 224:22
directly [1] - 241:2
director [3] - 185:21, 244:8, 244:14
dirt [2] - 247:8, 250:15
disclosed [1] - 226:18
discloses [2] - 226:10, 226:13
disconnect [1] - 228:9
discovery [1] - 197:22
discuss [2] - 232:10, 244:3
discussed [2] - 215:6, 217:7
discussing [1] - 227:11
discussion [3] - 222:20, 223:4, 254:10
discussions [1] - 209:2
disown [1] - 245:9
displayed [1] - 214:16
dispute [2] - 211:15, 233:7
disputed [1] - 215:18
disruptive [1] - 239:6
distinction [1] - 219:17
distinguish [1] - 255:20
DISTRICT [3] - 177:1, 177:1, 177:11
disturbing [1] - 257:21
Division [1] - 216:9
DIVISION [1] - 177:2
doctor [3] - 247:15, 247:18, 247:21
doctor's [1] - 248:5
document [5] - 202:20, 202:23, 208:7,
221:5, 221:15
documents [13] - 183:22, 197:19,
199:25, 202:12, 203:14, 204:5, 207:1,
207:20, 207:21, 211:19, 223:6, 234:15,
235:18
dollar [2] - 192:2, 206:20
dollars [8] - 181:19, 192:10, 192:12,

199:8, 201:11, 202:7, 206:17, 248:16
dominos [1] - 214:3
done [4] - 193:3, 193:18, 214:4
door [3] - 202:21, 203:2, 205:12
dot [2] - 257:8, 257:9
double [1] - 228:6
doubts [1] - 223:19
down [12] - 184:7, 188:8, 189:3, 190:7,
191:23, 202:25, 207:17, 215:21,
217:24, 232:20, 246:12, 254:3
Dr [3] - 200:7, 201:8
dramatic [1] - 255:17
drawings [1] - 217:4
dress [1] - 181:1
dressed [1] - 180:25
drill [9] - 190:12, 191:1, 242:14,
242:15, 247:20, 248:7, 248:16, 248:19,
248:22
Drive [1] - 178:12
driving [1] - 195:13
dropped [4] - 223:25, 229:18, 229:22,
230:6
drove [1] - 245:18
Dubai [1] - 210:4
due [1] - 229:22
duly [1] - 241:20
duration [1] - 180:8
during [3] - 185:20, 197:23, 223:16
E
e-mails [1] - 204:25
earliest [1] - 180:6
early [2] - 216:23, 256:24
earned [1] - 219:16
earth [6] - 189:2, 236:4, 242:5, 242:6,
249:21, 250:15
earthquake [1] - 189:1
ease [1] - 207:24
easily [1] - 218:15
east [1] - 187:18
East [3] - 177:24, 210:5
easy [2] - 185:17, 191:14
economist [1] - 206:8
economy [1] - 212:16
edge [2] - 184:20, 201:25
Edinburgh [2] - 218:23, 219:13
EEZ [1] - 257:4
effect [2] - 188:7, 235:17
efficiency [1] - 197:15
efficiently [1] - 196:6
efforts [2] - 184:10, 217:6
either [4] - 217:25, 230:1, 240:11,
256:18
elaborate [1] - 233:18
eleven [1] - 212:1
ELLIS [2] - 177:19, 177:23
ELLISON [1] - 177:11
emerging [1] - 222:5
employee [1] - 231:1
employees [5] - 183:7, 201:10, 218:25,

231:16, 241:8
enable [2] - 196:17, 202:18
encourage [1] - 212:21
end [10] - 187:16, 195:6, 212:24,
213:11, 221:23, 223:24, 226:16, 232:7,
250:7, 254:21
ended [1] - 246:2
ends [1] - 252:7
Energy [1] - 178:6
engineer [1] - 216:21
engineering [1] - 216:21
entangle [1] - 185:12
enters [1] - 250:21
entire [4] - 212:20, 224:1, 255:14,
257:2
entirety [1] - 256:3
entitled [6] - 180:11, 206:15, 206:20,
226:25, 229:10, 258:9
equipment [31] - 182:11, 182:12,
182:14, 199:15, 204:13, 206:19,
209:17, 209:19, 209:22, 210:1, 214:7,
216:11, 216:12, 216:14, 216:18,
218:13, 219:3, 219:10, 219:19, 220:4,
221:7, 222:21, 222:25, 223:22, 224:7,
227:11, 231:3, 232:21, 234:7, 234:8
equivalent [1] - 247:13
Eric [2] - 178:4, 217:18
especially [1] - 196:25
essentially [5] - 189:1, 206:24, 228:15,
228:24, 256:9
estimated [1] - 228:23
ET [1] - 177:7
Euro [1] - 197:14
evaluate [1] - 256:14
everyday [1] - 184:22
evidence [29] - 216:19, 217:11,
217:15, 219:23, 222:4, 223:11, 224:2,
225:19, 226:1, 226:5, 229:17, 230:4,
230:5, 230:19, 232:17, 233:24, 233:25,
234:21, 234:22, 235:9, 235:12, 235:16,
236:16, 236:17, 236:18, 237:3, 240:12,
240:16
evolution [3] - 215:5, 218:16
evolving [1] - 215:2
exact [3] - 190:18, 211:8, 247:25
EXAMINATION [2] - 179:5, 241:22
examination [2] - 211:1, 237:25
examiners [2] - 201:25, 210:25
example [5] - 209:16, 211:5, 215:1,
226:12, 252:20
except [6] - 184:14, 186:21, 191:12,
203:13, 203:25, 211:7
excess [1] - 239:14
exchange [1] - 237:12
exclusive [1] - 199:5
exclusively [1] - 217:21
excuse [1] - 239:3
excuses [2] - 211:5, 212:6
executives [2] - 185:21, 224:5
exhibit [1] - 237:12
exist [2] - 193:24, 227:6

264
existing [1] - 202:14
expect [2] - 254:10, 255:8
expectation [2] - 203:21, 237:25
expense [1] - 228:11
expensive [1] - 248:14
experience [1] - 220:1
experiencing [1] - 194:22
expert [5] - 200:9, 201:19, 201:20,
228:15
expertise [1] - 219:12
experts [5] - 199:14, 201:18, 231:8,
238:9, 238:11
explain [9] - 200:15, 225:17, 241:14,
243:21, 244:16, 249:3, 250:13, 252:15,
253:8
explains [1] - 197:4
exploration [4] - 201:20, 242:16,
248:1, 248:13
exploratory [1] - 248:15
explore [2] - 242:3, 242:13
extent [2] - 255:2, 256:17
externally [1] - 231:18
extremely [1] - 248:11
Exxon [1] - 238:24
F
F1 [1] - 198:11
face [1] - 211:17
faced [1] - 214:3
fact [7] - 208:12, 220:22, 221:24,
229:13, 231:23, 232:5, 238:10
factory [2] - 210:1, 210:3
facts [2] - 187:2, 227:15
fall [4] - 200:16, 210:21, 224:4, 228:23
falling [2] - 184:16, 184:21
falls [1] - 199:16
false [2] - 214:2, 256:6
familiar [2] - 223:24, 245:17
family [2] - 218:23, 245:6
fan [1] - 192:18
fanning [1] - 195:2
far [4] - 209:18, 227:16, 240:10
fare [1] - 254:10
fashion [1] - 219:15
fast [2] - 237:24, 240:3
faster [3] - 195:20, 196:6, 196:7
father [3] - 245:4, 245:8, 245:21
feather [5] - 195:10, 199:18, 200:1,
226:19
features [2] - 193:24, 204:22
feet [2] - 252:7, 252:24
fell [1] - 243:7
fence [4] - 225:1, 225:3, 225:4
fences [2] - 198:16, 224:22
few [4] - 181:6, 191:15, 233:20, 233:21
field [16] - 190:25, 192:23, 201:18,
201:23, 214:20, 215:2, 216:17, 217:6,
217:12, 219:7, 243:23, 243:24, 252:25,
253:16
fields [1] - 253:1
Fifteenth [1] - 177:20

figure [3] - 190:11, 239:15, 245:24
file [4] - 180:10, 180:16, 201:17,
201:21
fill [1] - 197:12
filled [2] - 201:3, 249:24
fin [2] - 223:20, 231:2
final [1] - 232:5
finally [1] - 214:5
fine [1] - 216:7
finer [1] - 256:1
finish [3] - 193:3, 237:23, 237:25
finished [1] - 193:7
first [32] - 181:14, 184:12, 186:14,
188:24, 191:21, 195:19, 197:24,
200:19, 200:22, 207:15, 213:16, 215:7,
215:14, 220:23, 222:6, 226:3, 227:10,
230:2, 233:23, 236:15, 236:17, 240:19,
241:4, 241:20, 242:16, 242:23, 245:20,
246:8, 246:11, 249:13, 251:7
fish [3] - 245:19, 252:10, 253:3
fishing [1] - 191:20
fits [1] - 222:1
five [7] - 197:13, 200:6, 208:22,
248:18, 248:21, 252:22
flaps [1] - 194:7
flat [2] - 185:1, 185:5
fleet [2] - 201:4, 204:2
fleet's [1] - 201:2
Floor [1] - 178:6
floor [6] - 181:21, 189:4, 189:5,
189:12, 190:8
focus [2] - 244:10, 245:3
folks [6] - 210:2, 210:11, 216:19,
234:22, 236:18, 239:16
follower [1] - 218:20
following [6] - 181:10, 237:10, 238:22,
239:17, 240:5, 254:1
follows [1] - 241:21
food [1] - 254:7
football [2] - 252:25, 253:1
FOR [3] - 177:15, 178:1, 178:9
forces [1] - 186:8
foregoing [1] - 258:7
form [2] - 224:14, 233:6
former [1] - 245:22
forth [1] - 252:21
forward [2] - 226:9, 233:13
four [10] - 181:22, 184:5, 198:16,
202:1, 202:2, 210:25, 222:10, 235:20,
245:23, 248:21
four-month [1] - 245:23
fourth [1] - 190:14
framers [2] - 199:1, 199:6
free [1] - 212:16
free-market [1] - 212:16
freeing [1] - 208:1
frequencies [1] - 251:1
Friendswood [1] - 244:22
fringe [2] - 199:20, 208:20
fringes [1] - 256:8
front [1] - 205:2
fuel [2] - 193:11, 206:19

Fugro [82] - 182:6, 182:7, 182:12,
182:15, 182:18, 182:19, 182:24, 183:2,
183:4, 183:18, 183:22, 183:23, 184:12,
184:16, 184:21, 185:22, 186:7, 186:19,
188:17, 192:7, 196:10, 196:13, 196:16,
196:22, 197:17, 199:15, 200:19,
200:20, 201:5, 202:12, 203:3, 203:5,
203:19, 204:17, 205:8, 205:9, 206:1,
206:14, 206:17, 207:8, 207:10, 207:13,
207:20, 208:9, 208:14, 208:18, 209:2,
209:19, 209:21, 210:21, 210:23,
211:14, 211:18, 211:21, 211:25,
219:19, 220:17, 220:19, 220:20,
220:22, 221:8, 221:17, 221:23, 221:25,
224:6, 224:15, 227:2, 227:10, 227:20,
229:25, 231:24, 232:6, 232:20, 233:2,
233:17, 233:25, 234:9, 235:2, 236:8,
236:21
FUGRO [2] - 177:6, 178:9
Fugro's [8] - 184:9, 185:20, 186:15,
207:1, 210:7, 211:15, 241:18
Fugro-Geoteam [2] - 233:17, 233:25
full [6] - 194:19, 198:6, 201:2, 203:21,
230:14, 233:13
G
gallery [2] - 200:7, 201:9
Galveston [4] - 244:21, 244:25, 245:1,
246:16
gap [2] - 192:19, 193:11
gaps [2] - 197:6, 197:11
gas [23] - 181:21, 182:8, 183:5,
189:14, 196:10, 202:6, 242:3, 242:13,
248:1, 248:6, 248:8, 248:13, 248:15,
248:24, 250:16, 250:23, 251:8, 251:10,
251:11, 252:5, 253:10, 253:16
gather [1] - 192:17
gear [2] - 184:18, 247:2
Geco [2] - 207:22, 217:9
Geco's [1] - 207:25
Geco-Prakla [1] - 217:9
generation [1] - 231:21
gentlemen [4] - 218:17, 221:4, 237:5,
253:18
geo [2] - 242:5, 250:15
Geo [1] - 229:19
Geo-Prakla [1] - 229:19
GEOPHYSICAL [2] - 177:6, 178:1
geophysical [6] - 242:2, 242:4,
242:23, 246:9, 246:22, 247:16
Geophysical [2] - 214:12, 217:8
geophysics [2] - 250:14
Geoteam [2] - 233:17, 233:25
GEOTEAM [2] - 177:7, 178:9
Gillman [1] - 184:4
Gilman [1] - 177:23
given [2] - 229:5, 256:25
glamourous [1] - 246:10
global [4] - 223:25, 244:3, 244:8,
244:13

265
glossy [1] - 196:23
gold [2] - 216:14, 218:1
Gordon [2] - 178:10, 233:16
gossip [1] - 228:16
graduated [3] - 241:11, 246:4, 246:6
grandfathers [1] - 245:4
granted [3] - 202:1, 213:15, 243:5
grass [1] - 197:7
great [7] - 185:2, 191:18, 199:1,
200:19, 201:1, 207:24, 208:3
green [1] - 200:2
Gregg [2] - 177:19, 184:3
grew [2] - 244:19, 244:20
grip [1] - 237:18
gross [2] - 228:7, 228:8
groundbreaking [1] - 219:1
group [1] - 244:2
grow [1] - 202:8
growing [1] - 202:5
guarantee [1] - 207:25
guess [3] - 190:20, 194:4, 242:23
guessing [1] - 228:24
guesswork [1] - 228:18
Gulf [8] - 215:8, 243:13, 246:17,
246:18, 248:13, 248:15, 248:17, 257:2
gunner [1] - 188:21
guns [1] - 249:18
guy [3] - 187:8, 187:9, 188:3
guys [1] - 236:20
H
half [4] - 209:25, 237:6, 239:6, 257:3
hand [5] - 180:25, 182:13, 233:10,
240:22, 246:13
handle [2] - 209:7, 213:5
handling [1] - 224:9
handwritten [1] - 217:4
hangs [1] - 217:22
Hans [1] - 185:21
happy [3] - 193:5, 193:6, 196:24
Harahan [5] - 209:18, 210:6, 210:13,
216:5, 219:13
hard [9] - 181:19, 187:12, 188:9,
214:11, 217:13, 218:7, 219:9, 231:22,
232:21
hard-working [1] - 214:11
harder [1] - 188:1
harmed [3] - 183:23, 214:6, 228:1
haunting [1] - 209:4
head [2] - 221:8
heading [1] - 221:1
headquartered [1] - 242:12
headquarters [1] - 242:8
hear [48] - 181:23, 182:1, 183:22,
184:14, 185:20, 187:8, 190:13, 192:14,
194:3, 195:9, 196:15, 199:14, 200:6,
200:18, 201:6, 201:14, 205:22, 206:4,
206:7, 206:8, 206:9, 206:23, 208:10,
211:2, 211:20, 215:3, 216:25, 217:7,
219:4, 219:25, 221:15, 222:15, 222:17,
222:19, 225:5, 227:14, 227:17, 228:14,

230:7, 230:11, 230:25, 231:16, 231:20,
232:9, 232:15, 235:11, 249:18
heard [15] - 186:14, 188:25, 192:21,
211:4, 213:9, 213:12, 219:18, 222:6,
222:7, 225:20, 226:15, 240:10, 242:17,
251:18, 254:24
hearsay [1] - 228:16
heavy [1] - 232:2
HEDGES [1] - 178:5
Hedges [1] - 214:10
held [7] - 181:10, 232:10, 237:10,
238:22, 239:17, 240:5, 254:1
Hellinger [1] - 178:2
help [3] - 209:12, 232:25, 249:2
herself [1] - 240:13
hide [4] - 209:13, 231:23, 231:24,
234:10
high [2] - 182:2, 229:18
highlight [1] - 257:17
highlighted [2] - 202:21, 209:9
highly [1] - 234:1
Hillesund [1] - 225:6
himself [1] - 240:13
hired [3] - 200:10, 224:6, 246:9
historical [1] - 215:1
history [4] - 213:20, 225:13, 241:15,
255:13
hit [3] - 188:3, 190:12, 223:25
hits [1] - 250:22
hold [2] - 191:22, 228:5
holds [1] - 191:22
honest [1] - 214:11
Hong [1] - 178:11
Honor [15] - 180:15, 180:18, 181:15,
237:11, 238:5, 239:20, 240:18, 249:7,
249:10, 254:24, 255:4, 255:22, 256:22,
257:16, 258:2
HONORABLE [1] - 177:11
hope [1] - 239:24
hoping [2] - 190:12, 207:2
hour [4] - 214:1, 237:6, 238:1, 239:6
hours [4] - 180:2, 193:12, 193:14,
246:13
house [1] - 204:10
HOUSTON [1] - 177:2
Houston [18] - 177:4, 177:17, 178:7,
178:13, 178:16, 178:20, 186:25,
187:19, 187:22, 190:16, 204:20,
209:22, 210:8, 242:9, 243:14, 244:20,
244:21
huge [2] - 192:12, 228:13
hundred [3] - 181:19, 202:7, 248:16
hundreds [2] - 192:10, 199:7
hydrocarbon [1] - 253:16
hydrocarbons [1] - 252:4
hydrophones [2] - 189:8, 249:25
I
ideas [4] - 201:16, 212:20, 217:14,
225:9
identified [2] - 186:18, 223:7

identifies [1] - 199:23
image [9] - 181:20, 190:8, 196:12,
247:7, 250:3, 252:11, 253:8, 253:11,
253:14
images [2] - 220:12, 220:16
imagine [1] - 188:5
imaging [1] - 251:23
Imaging [1] - 216:9
immediately [2] - 223:12, 232:7
impact [1] - 241:17
implicate [1] - 207:16
implied [1] - 234:11
important [8] - 191:4, 191:5, 205:19,
219:16, 231:23, 248:8, 248:11, 256:23
importantly [6] - 218:18, 220:3,
222:15, 226:17, 228:5, 235:15
impression [2] - 255:24, 256:6
improved [1] - 215:8
in-water [1] - 219:3
inaccurate [1] - 228:24
inappropriate [1] - 180:9
INC [2] - 177:7, 178:9
incentive [1] - 222:23
include [1] - 209:8
included [1] - 222:12
includes [1] - 215:24
including [6] - 214:22, 218:2, 220:4,
222:10, 227:25, 244:15
increase [1] - 196:19
increasing [1] - 203:17
indeed [3] - 203:7, 205:6, 217:6
indemnify [1] - 208:20
indemnity [1] - 221:20
independent [1] - 216:23
indicated [1] - 254:7
individuals [1] - 234:13
industry [7] - 205:10, 215:6, 218:1,
218:20, 222:9, 224:1, 224:4
infill [7] - 192:15, 193:17, 195:18,
196:5, 196:25, 197:5
inflated [2] - 214:7, 235:8
information [4] - 180:3, 209:2, 228:15,
228:21
infringe [10] - 199:19, 199:22, 208:5,
211:14, 211:17, 212:6, 227:23, 234:12,
235:1, 236:22
infringed [12] - 182:6, 182:18, 182:19,
182:20, 183:10, 200:4, 206:16, 208:8,
209:24, 212:1, 232:3, 236:22
infringement [24] - 182:21, 182:22,
184:10, 206:13, 208:16, 211:15,
211:19, 212:2, 213:10, 213:12, 213:24,
214:1, 218:22, 222:17, 223:3, 223:11,
224:3, 224:10, 225:19, 226:15, 231:10,
236:20, 241:18, 255:25
infringing [14] - 183:4, 183:5, 183:6,
183:9, 200:16, 201:4, 204:21, 207:9,
208:11, 223:15, 227:19, 232:6, 232:15
initial [2] - 180:20, 207:19
innovate [3] - 199:7, 201:7, 201:10
innovation [3] - 212:4, 212:22, 255:13

266
innovative [1] - 214:11
input [1] - 220:24
inquire [1] - 252:17
inside [2] - 197:24, 223:9
insinuation [1] - 214:3
inspire [1] - 185:6
installed [1] - 204:23
instance [1] - 189:19
instances [1] - 195:4
instead [10] - 183:13, 210:16, 211:20,
212:24, 222:20, 223:3, 223:12, 229:4,
229:6, 230:5
instruction [1] - 257:15
instructions [2] - 239:21, 256:20
intellectual [1] - 224:12
intend [1] - 226:1
intended [3] - 212:21, 222:11, 227:22
intentional [1] - 212:2
intentions [1] - 221:16
interacted [2] - 204:5, 217:2
interested [2] - 232:18, 232:19
internal [2] - 197:19, 223:6
internally [2] - 202:25, 231:18
International [3] - 210:3, 210:13,
210:21
international [2] - 227:18, 257:10
International's [1] - 210:8
internship [1] - 245:23
intervention [1] - 213:2
intimidate [1] - 233:9
introduced [1] - 229:22
introduction [2] - 213:19, 245:21
introductions [1] - 225:16
invalid [2] - 211:6, 226:2
invalidate [1] - 226:17
invalidity [1] - 224:11
invent [8] - 184:1, 201:7, 201:12,
235:15, 235:16, 235:18, 235:19, 235:20
invented [5] - 212:22, 224:13, 231:19,
235:14, 256:3
invention [3] - 181:18, 199:5, 224:24
inventions [3] - 185:7, 199:2, 226:5
inventor [1] - 222:11
inventors [1] - 225:6
inventory [1] - 209:11
invest [1] - 184:1
invested [1] - 202:7
investing [1] - 202:5
investment [3] - 181:20, 201:12,
201:16
invitation [1] - 204:19
inviting [1] - 254:5
invoked [1] - 238:6
involved [1] - 243:18
involves [1] - 196:14
ION [120] - 177:6, 178:1, 182:6, 182:7,
182:11, 182:15, 182:18, 182:19,
182:23, 183:1, 183:4, 183:18, 183:22,
183:23, 184:9, 184:12, 184:16, 184:17,
186:7, 186:15, 186:20, 196:16, 197:3,
197:11, 197:16, 197:25, 198:15, 201:5,
202:11, 202:24, 203:5, 203:14, 205:8,
205:16, 205:18, 205:23, 206:1, 207:9,

207:13, 207:16, 207:23, 208:14,
208:21, 209:2, 209:17, 209:19, 210:3,
210:7, 210:12, 210:13, 210:20, 210:23,
211:13, 211:15, 211:18, 211:21,
211:25, 212:23, 213:5, 214:12, 214:19,
214:22, 216:3, 216:6, 216:9, 216:17,
217:1, 217:7, 217:12, 217:13, 217:19,
218:19, 218:23, 219:8, 219:10, 219:15,
219:18, 219:20, 219:21, 220:13,
220:16, 220:19, 221:6, 221:17, 221:23,
221:25, 222:13, 222:20, 222:21,
222:25, 223:6, 223:14, 224:15, 227:11,
227:20, 228:6, 228:8, 228:10, 229:25,
231:8, 231:10, 231:11, 231:16, 231:20,
231:23, 232:3, 232:6, 232:7, 232:10,
232:12, 232:13, 233:2, 233:4, 233:12,
234:5, 241:17, 255:13
ION's [16] - 196:19, 199:15, 199:23,
205:12, 205:14, 213:7, 214:6, 217:4,
217:5, 219:17, 220:22, 223:19, 224:7,
231:12, 231:14, 232:21
ION/Fugro [2] - 220:16, 221:2
issue [13] - 200:5, 208:12, 213:1,
221:18, 221:20, 221:24, 221:25, 228:3,
228:4, 231:9, 236:19, 255:7, 257:4
issued [5] - 211:1, 211:3, 211:10,
226:3, 226:6
issues [5] - 207:25, 209:4, 254:18,
254:21, 255:22
iteration [1] - 219:6
itself [4] - 213:13, 214:14, 227:19,
251:11
J
James [1] - 178:14
Jason [1] - 178:10
job [11] - 192:25, 193:3, 197:6, 197:9,
197:10, 197:15, 204:8, 205:6, 205:7,
246:8, 246:23
jobs [9] - 193:18, 203:25, 205:23,
206:1, 206:11, 206:14, 206:21, 206:22,
238:25
Johnny [3] - 178:19, 258:7, 258:11
join [1] - 186:8
Jonathan [2] - 178:2, 217:18
Jonna [1] - 178:3
Judge [1] - 198:24
JUDGE [1] - 177:11
July [1] - 177:7
June [2] - 222:9, 223:10
juror [1] - 238:24
jurors [3] - 180:2, 233:12, 254:5
jury [26] - 181:10, 181:11, 198:24,
205:2, 237:8, 237:10, 237:19, 239:1,
239:7, 240:5, 240:6, 240:8, 242:17,
244:17, 244:18, 249:3, 252:15, 253:25,
254:1, 255:7, 255:19, 255:23, 256:5,
256:25, 257:22
JURY [1] - 177:8
K
Kaplan [3] - 177:15, 184:4, 189:4
KAPLAN [1] - 177:16
keep [13] - 187:21, 190:4, 192:5,
193:20, 194:14, 195:7, 197:1, 202:5,
208:14, 208:17, 209:3, 230:8
keeping [5] - 185:16, 209:2, 213:16
keeps [1] - 193:21
KEITH [1] - 177:11
kept [3] - 183:4, 183:6, 183:9
kicks [2] - 195:10, 199:18
kid [1] - 192:22
kind [5] - 191:2, 199:18, 204:12,
212:23, 236:1
KIRKLAND [2] - 177:19, 177:23
knife [1] - 191:24
KNOBLOCH [1] - 178:11
knowing [1] - 207:9
knowingly [1] - 232:3
known [6] - 197:20, 216:5, 216:9,
216:10, 218:22, 218:25
knows [2] - 255:14, 255:15
Kopecky [1] - 178:2
L
label [2] - 210:12, 210:21
labels [2] - 210:16, 257:11
lack [1] - 256:18
ladies [3] - 221:4, 237:5, 253:18
laggard [1] - 205:10
land [1] - 224:20
language [1] - 225:7
lap [1] - 243:7
lapse [2] - 190:15, 191:7
large [4] - 224:6, 249:19, 253:2,
253:16
largely [1] - 218:14
larger [2] - 221:9, 228:12
largest [3] - 182:4, 218:4, 243:13
Las [1] - 224:4
last [4] - 191:12, 192:7, 193:1, 209:9
late [1] - 180:24
lately [1] - 209:5
lateral [43] - 181:24, 185:14, 185:25,
186:5, 186:12, 193:20, 193:24, 194:8,
195:17, 196:4, 196:16, 197:10, 202:16,
204:7, 204:21, 214:14, 214:17, 214:18,
214:23, 215:3, 215:4, 215:17, 215:19,
215:20, 215:25, 216:1, 216:2, 216:22,
218:6, 218:10, 219:25, 221:3, 227:7,
228:9, 230:20, 231:6, 235:16, 235:25,
256:3, 256:4, 256:7
laterally [1] - 222:24
latest [1] - 219:5
launched [1] - 219:6
Law [1] - 227:15
law [3] - 206:23, 212:5, 255:1
lawn [8] - 192:22, 192:23, 193:4,
193:13, 195:19, 197:8, 215:12, 215:13

267
Lawn [1] - 215:11
lawnmower [3] - 192:25, 197:5,
215:10
lawsuit [2] - 209:6, 232:22
lawyers [1] - 240:11
lays [1] - 248:25
lead [1] - 218:8
leader [2] - 218:19, 218:20
leadership [1] - 185:5
leading [3] - 200:9, 205:10
leads [1] - 196:7
least [1] - 217:2
leave [2] - 218:19, 232:13
Lee [2] - 177:15, 184:4
left [6] - 187:11, 187:14, 187:17, 197:6,
253:11, 256:5
legal [1] - 233:5
Leif [1] - 208:6
length [1] - 220:21
lengthy [1] - 184:11
less [4] - 181:1, 214:15, 254:4
letter [1] - 207:25
letting [1] - 212:24
level [2] - 194:5, 194:12
levels [1] - 189:5
liable [1] - 228:6
life [3] - 183:14, 184:22, 245:22
lights [1] - 188:19
likely [1] - 225:20
likewise [2] - 239:10, 239:11
limitation [2] - 226:14, 226:22
limited [1] - 199:5
line [14] - 185:15, 188:22, 191:11,
191:20, 191:25, 193:1, 193:23, 198:15,
225:23, 226:9, 250:8
lines [2] - 192:25, 193:4
listen [2] - 225:25, 236:3
listened [1] - 219:11
listening [1] - 237:2
literature [1] - 231:25
living [2] - 245:23, 246:2
LLC [1] - 177:4
LLP [6] - 177:16, 177:19, 177:23,
178:5, 178:11, 178:15
loath [1] - 239:12
local [1] - 194:12
LoCascio [15] - 177:19, 184:3, 208:24,
214:16, 220:4, 220:15, 221:14, 222:2,
233:23, 234:11, 234:18, 235:25,
237:13, 240:17, 256:2
LOCASCIO [38] - 181:15, 181:17,
205:21, 208:23, 208:25, 211:12,
237:23, 238:4, 238:8, 238:14, 238:16,
238:18, 239:4, 239:12, 239:20, 240:18,
241:4, 241:23, 249:5, 249:10, 249:12,
250:2, 250:10, 250:12, 251:14, 251:16,
252:12, 252:14, 253:5, 253:7, 254:9,
254:15, 254:18, 254:23, 255:18,
256:11, 257:6, 258:1
loCascio [1] - 213:21
LoCascio's [3] - 215:10, 221:2, 233:22
LOCASCIO............ [1] - 179:5
located [1] - 243:17

locations [1] - 235:1
Loewe [2] - 180:1, 240:21
longtime [2] - 216:16, 218:24
look [14] - 186:25, 188:15, 201:24,
206:9, 225:10, 228:14, 233:13, 234:13,
234:15, 236:13, 245:19, 251:6, 256:13,
257:6
looked [4] - 190:16, 202:1, 211:9,
223:21
looking [6] - 191:10, 192:11, 212:7,
235:9, 251:9, 251:17
looks [6] - 184:23, 192:17, 194:9,
200:16, 208:4, 220:12
loophole [2] - 210:15, 210:19
loopholes [1] - 212:7
loose [2] - 192:1
lose [3] - 191:25, 192:9, 192:11
losing [2] - 228:1, 230:1
lost [3] - 226:25, 229:1, 232:23
Louisiana [8] - 177:16, 178:16,
209:18, 210:2, 210:6, 210:14, 216:5,
219:13
love [1] - 206:14
loved [1] - 245:8
low [1] - 193:17
loyal [1] - 218:24
lucrative [1] - 201:1
lunches [1] - 254:5
lure [2] - 191:25, 192:1
M
magazine [1] - 228:16
magazines [1] - 196:23
magnetic [1] - 216:11
mails [1] - 204:25
Main [1] - 178:6
maker [1] - 186:7
man [1] - 245:20
management [1] - 244:1
MANAGER [4] - 181:6, 181:9, 239:19,
240:23
manager [1] - 241:7
manages [1] - 219:3
managing [2] - 185:21, 243:3
mandatory [1] - 203:23
manmade [1] - 182:4
manner [3] - 214:7, 226:9, 227:22
manufacturer [1] - 219:10
Marc [1] - 201:9
marine [9] - 200:13, 201:20, 215:5,
218:2, 219:20, 229:20, 245:3, 246:5,
247:10
Marine [3] - 202:15, 210:13, 216:9
maritime [1] - 244:25
Mark [1] - 222:10
mark [1] - 240:8
market [25] - 186:1, 198:1, 202:8,
202:11, 202:15, 202:16, 202:22, 203:1,
205:13, 212:16, 212:25, 213:1, 213:3,
219:11, 220:7, 221:7, 223:17, 229:17,
229:20, 230:20, 231:6, 232:23, 233:1,

234:1, 236:9
marketplace [3] - 202:5, 202:13,
241:18
massive [1] - 253:1
matter [5] - 213:12, 230:1, 231:14,
244:9, 258:9
maximum [2] - 181:3, 227:14
mean [4] - 213:25, 220:5, 240:1, 242:4
meaning [2] - 189:17, 196:25
means [6] - 196:18, 198:5, 198:6,
220:6, 220:7, 225:20
meant [1] - 224:23
measuring [1] - 250:1
mechanical [3] - 178:21, 216:20,
217:2
meet [4] - 201:8, 208:6, 219:14, 244:3
meeting [3] - 186:9, 223:10, 232:9
members [2] - 181:11, 240:6
Memorial [1] - 187:17
memos [1] - 197:21
men [1] - 214:11
mention [1] - 223:10
mentioned [8] - 191:19, 235:18,
239:20, 247:2, 247:12, 249:23, 250:14,
253:3
merged [1] - 229:19
mesh [1] - 221:19
meshed [1] - 222:3
messages [1] - 218:18
method [1] - 231:13
methods [1] - 214:19
Mexico [6] - 215:8, 243:13, 246:17,
246:18, 248:13, 257:3
Meyer [3] - 185:21, 186:3, 186:4
microphone [4] - 236:2, 236:3, 236:6,
253:2
microphones [2] - 189:7, 249:24
Middle [2] - 210:5
middle [3] - 187:4, 191:13, 192:19
might [16] - 188:8, 190:14, 192:15,
193:7, 194:19, 204:10, 207:13, 207:21,
215:12, 216:15, 222:5, 229:3, 248:19,
252:6, 252:25
mightily [1] - 256:19
mike [1] - 241:2
miles [16] - 182:2, 187:3, 187:7,
187:10, 187:23, 188:5, 188:13, 189:23,
191:14, 194:17, 224:22, 227:13,
227:15, 252:7, 252:22
million [15] - 181:19, 192:2, 192:11,
196:11, 196:13, 197:14, 200:21,
200:22, 202:7, 206:20, 207:8, 226:25,
248:16, 248:20
million-dollar [1] - 192:2
millions [2] - 199:8, 201:11
mind [1] - 194:21
minimal [1] - 247:24
minimize [1] - 248:21
minor [1] - 256:23
minute [3] - 211:11, 237:7
minutes [4] - 181:3, 181:7, 208:22,

268
231:4
misapprehension [1] - 256:6
MISD [1] - 216:9
misleading [1] - 257:13
miss [2] - 193:11, 248:21
missed [2] - 195:19, 197:8
mistake [2] - 183:16, 211:3
MIT [1] - 200:10
mode [10] - 193:22, 195:10, 199:20,
199:21, 200:2, 226:19, 226:20, 226:21
model [1] - 229:10
models [1] - 219:17
modes [4] - 199:18, 214:15, 222:14,
226:18
modest [1] - 200:9
mom [1] - 193:5
moment [2] - 238:21, 257:16
Monday [1] - 180:5
money [15] - 191:18, 193:16, 195:20,
199:10, 204:1, 206:18, 221:6, 221:10,
223:1, 228:10, 228:25, 230:10, 235:6,
235:10, 235:11
monitor [4] - 184:23, 184:25, 185:2,
194:10
monitored [2] - 217:12, 219:11
monitoring [1] - 231:12
monitors [1] - 222:5
month [1] - 245:23
months [3] - 200:19, 200:23, 246:18
morning [2] - 240:11, 253:22
Morton [1] - 208:6
most [6] - 204:25, 216:6, 218:18,
234:3, 236:12, 243:6
motion [1] - 180:11
motive [1] - 184:9
motor [1] - 215:11
motors [1] - 218:13
mount [1] - 217:23
mousetrap [4] - 212:22, 212:24, 220:8,
220:9
move [3] - 194:14, 224:21, 237:24
moveable [1] - 182:5
moved [1] - 186:5
moves [3] - 218:6, 250:6, 250:25
moving [1] - 246:13
mow [4] - 192:22, 193:10, 195:18,
215:12
mowed [1] - 192:22
mower [4] - 192:24, 197:10, 215:11,
215:12
mowing [1] - 215:13
MR [63] - 179:5, 180:15, 180:18,
181:15, 181:17, 205:21, 208:23,
208:25, 211:12, 212:12, 212:15,
215:23, 216:14, 222:19, 227:4, 231:5,
233:16, 237:11, 237:17, 237:23, 238:4,
238:5, 238:8, 238:14, 238:16, 238:18,
239:4, 239:9, 239:10, 239:11, 239:12,
239:20, 240:18, 241:4, 241:23, 249:5,
249:10, 249:12, 250:2, 250:10, 250:12,
251:14, 251:16, 252:12, 252:14, 253:5,
253:7, 254:9, 254:14, 254:15, 254:18,
254:23, 255:12, 255:18, 256:1, 256:11,

256:22, 257:6, 257:8, 257:9, 257:16,
257:21, 258:1
multiple [3] - 188:6, 189:25, 213:16
MUST [1] - 205:6
mutually [1] - 186:10
N
name [3] - 184:3, 214:9, 233:16
named [2] - 216:21, 225:6
natural [6] - 192:19, 195:3, 195:12,
215:5, 218:15
nature [2] - 221:14, 228:17
navigation [2] - 207:22, 246:23
near [1] - 188:6
necessarily [3] - 195:4, 215:25, 256:8
need [15] - 181:6, 184:2, 186:6, 191:5,
194:23, 204:9, 207:25, 214:14, 221:3,
226:17, 251:1, 251:2, 254:17, 254:19,
257:18
needed [3] - 186:20, 209:23, 231:6
needs [3] - 219:11, 219:14, 257:5
negative [1] - 239:2
nervous [1] - 240:4
never [7] - 197:20, 207:10, 210:4,
213:15, 236:20, 254:6, 256:16
New [3] - 177:25, 209:18
new [7] - 185:4, 185:7, 187:9, 201:16,
209:25, 224:13, 226:5
next [19] - 191:22, 193:14, 207:13,
209:15, 214:25, 229:16, 231:21,
246:12, 246:17, 246:18, 249:14,
250:10, 251:4, 251:5, 251:22, 252:3,
253:5, 254:22, 257:19
nice [1] - 208:19
nipped [1] - 257:5
nobody [3] - 208:12, 220:9, 239:2
noise [1] - 236:4
none [2] - 253:24, 255:22
nonetheless [1] - 221:18
noninfringement [2] - 255:15, 255:19
nooks [1] - 195:14
North [8] - 241:7, 242:8, 242:11,
243:3, 243:4, 243:8, 243:16, 248:17
Northwest [1] - 177:20
Norway [1] - 209:23
Norwegian [1] - 224:6
notebooks [1] - 240:7
notes [1] - 217:4
nothing [4] - 201:6, 207:10, 240:10,
240:25
noticed [1] - 197:8
number [1] - 228:13
numbers [1] - 235:12
O
oath [2] - 240:12, 240:21
object [1] - 239:9
objection [1] - 257:1
objections [1] - 237:13

objectively [1] - 228:21
objects [1] - 250:22
observation [1] - 255:24
observer [1] - 246:23
observers [1] - 246:22
observing [1] - 246:23
obstruction [1] - 194:18
obvious [1] - 226:10
obviously [1] - 206:18
occurred [2] - 227:13, 235:2
ocean [6] - 189:4, 189:5, 189:14,
191:13, 200:14, 244:25
OF [1] - 177:1
offer [5] - 182:8, 185:23, 198:21,
203:6, 227:7
offered [1] - 227:10
offers [1] - 215:25
office [3] - 211:7, 211:9
offices [2] - 242:10
offshore [4] - 227:13, 243:12, 245:10,
245:23
often [1] - 229:13
oil [43] - 181:21, 182:8, 183:5, 189:13,
189:19, 189:21, 189:23, 190:11,
190:23, 191:1, 191:17, 192:6, 195:5,
196:10, 200:10, 202:6, 203:15, 203:20,
206:5, 208:7, 220:10, 223:25, 229:3,
230:14, 230:15, 242:3, 242:13, 242:14,
242:15, 247:25, 248:6, 248:8, 248:13,
248:15, 248:24, 250:16, 251:8, 251:10,
251:11, 252:4, 252:5, 253:10, 253:16
old [3] - 188:2, 189:15, 219:15
old-fashion [1] - 219:15
Olivier [1] - 216:21
once [5] - 211:21, 236:19, 248:19,
249:13, 251:5
one [60] - 182:18, 183:10, 184:23,
184:24, 185:4, 187:24, 189:17, 190:3,
191:20, 192:23, 193:13, 194:10,
196:11, 197:7, 197:25, 198:8, 199:24,
200:8, 200:20, 200:21, 201:2, 203:22,
205:1, 205:16, 207:7, 207:23, 208:13,
211:2, 211:3, 211:6, 211:11, 212:1,
213:19, 213:22, 213:24, 217:23, 218:4,
218:7, 218:15, 218:18, 219:22, 221:1,
223:13, 225:5, 225:12, 226:18, 227:6,
228:18, 230:12, 236:20, 237:11,
245:19, 248:18, 249:14, 251:7, 251:19,
253:15, 254:23
ongoing [1] - 222:1
onshore [1] - 248:24
open [4] - 203:2, 231:25, 234:21,
239:17
opened [1] - 205:12
opening [6] - 181:3, 181:13, 233:22,
254:24, 255:14, 256:2
opens [1] - 202:21
operate [1] - 242:7
operational [1] - 222:13
operations [3] - 209:5, 243:5, 243:24
opportunity [2] - 180:7, 225:2

269
opposed [1] - 190:12
option [5] - 192:2, 193:7, 193:16,
203:24, 206:12
Orca [1] - 219:6
order [3] - 234:3, 234:6, 252:17
original [1] - 225:9
Orleans [1] - 209:18
otherwise [2] - 195:15, 228:2
ought [2] - 188:3, 237:2
outfit [1] - 234:6
outside [8] - 180:20, 180:22, 210:20,
224:18, 225:4, 227:22, 235:7, 236:23
overlap [1] - 190:20
own [38] - 183:4, 183:7, 185:21,
194:12, 196:19, 197:19, 198:13,
198:17, 199:23, 199:25, 202:12,
203:14, 204:24, 205:14, 205:17, 207:1,
211:19, 211:20, 214:21, 216:18, 217:5,
217:13, 218:3, 219:21, 225:12, 226:1,
229:17, 229:22, 230:20, 231:22,
232:23, 233:2, 249:9, 254:25, 255:6,
255:21, 255:25, 256:22
owned [2] - 197:18, 198:6
owner [1] - 184:5
ownership [1] - 210:21
owns [1] - 188:16
Oyvind [1] - 225:6
P
p.m [3] - 177:6, 237:9, 258:4
page [1] - 250:7
PAGE [1] - 179:3
paid [7] - 193:6, 196:3, 196:13, 206:5,
206:17, 207:10, 230:15
painted [1] - 245:18
paper [3] - 251:21, 251:24, 252:10
pardon [1] - 212:12
parent [2] - 242:21, 244:8
Park [1] - 187:18
Parker [2] - 180:13, 180:23
part [8] - 204:9, 218:23, 222:1, 233:5,
244:1, 246:21, 255:16, 256:10
particular [3] - 189:16, 205:6, 252:19
parties [1] - 254:10
partnered [1] - 182:7
partnership [2] - 182:10, 220:18
parts [2] - 244:2, 249:15
pass [3] - 193:10, 193:13, 193:14
passed [1] - 187:19
passes [1] - 197:1
past [1] - 252:7
pastries [1] - 253:22
Patent [1] - 227:15
patent [41] - 183:10, 198:10, 198:11,
198:12, 199:12, 200:5, 201:15, 201:17,
201:19, 201:21, 201:25, 207:21,
207:25, 211:6, 211:8, 211:9, 211:10,
212:21, 213:10, 213:13, 213:14,
213:18, 214:18, 222:11, 224:19,
224:20, 225:23, 226:13, 226:14,
226:21, 226:22, 254:25, 255:5, 255:6,
255:25, 256:8
patented [8] - 184:15, 185:15, 188:10,
198:4, 198:7, 214:17, 214:19, 220:6
patents [51] - 181:23, 182:7, 182:18,
182:20, 183:6, 184:6, 185:6, 197:18,
198:16, 198:22, 198:25, 199:11,
199:16, 201:13, 202:1, 202:8, 207:16,
208:11, 209:4, 209:24, 211:1, 211:4,
211:12, 211:13, 211:16, 212:2, 212:6,
212:20, 214:13, 214:20, 214:21,
214:22, 215:13, 217:12, 223:12,
223:15, 224:14, 226:2, 231:12, 232:3,
232:7, 232:11, 232:12, 232:14, 232:19,
255:4, 255:21, 256:3, 256:12, 256:15
pattern [2] - 193:23, 254:21
pay [15] - 182:21, 183:1, 183:20,
191:18, 193:16, 196:10, 198:21, 206:3,
207:1, 208:20, 212:3, 221:23, 235:23,
254:6, 254:11
paying [2] - 193:1, 198:14
peers [1] - 244:2
penalty [1] - 240:13
pending [1] - 237:12
Pennzoil [1] - 178:15
people [31] - 183:13, 189:23, 193:16,
194:5, 198:8, 198:13, 199:6, 201:18,
201:23, 203:3, 204:25, 205:24, 206:6,
207:6, 209:10, 216:7, 216:10, 219:8,
223:19, 223:21, 232:10, 234:2, 235:23,
237:3, 240:1, 240:2, 243:5, 243:6,
243:15, 244:1, 251:19
people's [1] - 217:14
per [1] - 196:13
perceived [1] - 212:17
percent [4] - 228:21, 229:18, 229:20,
229:23
perform [8] - 182:12, 198:10, 215:17,
216:1, 219:20, 220:9, 224:7, 231:13
performance [1] - 182:14
performed [5] - 206:6, 207:7, 215:7,
215:19, 221:17
performing [2] - 219:22, 227:17
performs [3] - 213:8, 220:10, 256:7
perhaps [1] - 204:25
perjury [1] - 240:13
permission [1] - 249:9
person [2] - 191:22, 201:22
personally [2] - 222:11, 243:18
personnel [2] - 206:19, 222:21
perspective [2] - 231:12, 231:14
persuade [1] - 202:9
pertinent [1] - 245:16
photo [2] - 190:15, 191:7
photographs [1] - 217:5
Physical [1] - 229:19
physics [5] - 242:5, 242:6, 246:10,
250:18
pick [2] - 189:9, 224:21
picket [1] - 225:1
picture [7] - 191:6, 191:9, 209:11,
247:9, 247:15, 249:13, 251:3
pictures [1] - 185:10
piece [5] - 188:13, 189:19, 210:3,

224:20, 251:21
pieces [1] - 195:19
Pierce [2] - 178:2, 217:18
pioneered [2] - 185:15, 214:17
place [10] - 191:6, 194:23, 209:17,
210:10, 210:11, 213:16, 225:3, 226:3,
235:10, 247:24
Place [1] - 178:15
places [1] - 248:22
PLAINTIFF [1] - 177:15
plaintiff [2] - 180:6, 181:14
plan [1] - 209:25
planet [1] - 182:5
plans [2] - 197:22, 208:9
platform [1] - 231:21
played [1] - 205:20
playing [1] - 219:9
Plaza [1] - 178:6
pleased [1] - 224:8
pledge [1] - 208:16
plumber [1] - 204:9
plumbers [1] - 204:11
point [7] - 197:12, 211:8, 221:1, 223:2,
255:20, 255:23, 256:23
pointed [2] - 205:9, 222:16
points [3] - 196:22, 233:19, 256:18
policies [3] - 230:12, 230:17
policy [1] - 231:11
polished [1] - 218:9
port [2] - 187:19, 187:22
PORTER [1] - 178:5
Porter [1] - 214:10
position [2] - 224:21, 233:1
positioning [2] - 194:3, 194:6
possible [7] - 193:17, 205:3, 214:15,
215:9, 241:2, 247:24, 248:24
possibly [1] - 245:23
potential [3] - 208:1, 217:3, 223:7
potentially [3] - 208:10, 223:15,
257:12
power [1] - 189:11
Prakla [2] - 217:9, 229:19
predecessors [2] - 217:8, 237:1
premium [3] - 230:4, 235:23, 236:10
preponderance [1] - 225:19
presence [3] - 237:10, 242:11, 254:1
presentation [3] - 222:13, 239:6,
240:15
presented [2] - 180:6, 214:22
presenting [1] - 233:13
presently [1] - 209:12
presents [1] - 195:25
president [2] - 241:6, 243:1
presumed [1] - 211:4
pretty [3] - 185:2, 237:24, 239:2
previously [1] - 244:9
price [3] - 212:17, 230:4, 230:6
prices [1] - 223:25
primarily [1] - 227:9
principles [1] - 220:14
privilege [1] - 233:17

270
privileged [1] - 233:4
problem [7] - 185:12, 185:13, 186:22,
191:2, 193:5, 197:17, 239:1
problematic [1] - 192:4
problems [3] - 207:21, 228:12, 229:9
proceed [1] - 181:15
proceedings [1] - 258:8
Proceedings [1] - 178:21
process [4] - 197:23, 201:15, 242:16,
243:10
processing [1] - 243:13
produced [1] - 178:22
product [10] - 186:17, 206:25, 208:3,
208:15, 219:5, 222:12, 223:8, 235:2,
236:21, 243:11
productivity [1] - 196:19
products [9] - 200:16, 208:15, 212:18,
216:17, 218:21, 222:5, 224:16, 224:17,
227:25
profit [4] - 200:22, 206:15, 230:8,
233:9
profitable [1] - 186:2
profits [3] - 226:25, 228:1, 228:7
progress [2] - 199:3, 212:21
projecting [1] - 239:1
projects [2] - 204:17, 221:2
promote [2] - 199:3, 212:21
promoted [1] - 186:3
prompt [1] - 253:23
property [8] - 198:12, 198:13, 198:15,
199:13, 206:25, 211:13, 224:12, 234:13
propose [1] - 203:15
proprietary [8] - 198:1, 198:4, 198:5,
198:9, 202:15, 202:17, 203:1, 220:5
protect [5] - 183:25, 201:13, 211:12,
212:20, 224:12
protecting [1] - 232:18
protection [1] - 202:4
prototypes [1] - 217:5
proud [4] - 184:5, 214:10, 230:3, 233:5
provide [1] - 231:6
providing [1] - 254:10
proving [1] - 225:19
PTO [1] - 224:14
public [4] - 205:25, 223:14, 224:3,
228:22
published [1] - 209:8
pull [2] - 191:2, 249:12
pulled [2] - 195:1, 234:25
pulling [3] - 191:13, 195:23, 252:20
purchase [1] - 222:25
purposes [1] - 203:12
push [4] - 192:20, 220:15, 221:12,
221:18
put [18] - 187:14, 195:7, 196:23, 204:2,
204:10, 210:1, 218:2, 221:21, 222:22,
223:1, 223:22, 228:17, 235:4, 246:12,
249:5, 251:15, 252:17, 257:1
putting [3] - 247:1, 247:2
Q
Q-Marine [1] - 202:15
QFin [8] - 186:16, 215:20, 219:25,
220:4, 222:24, 227:25, 228:3, 236:12
QFIN [1] - 227:8
questions [1] - 180:9
quickly [4] - 205:1, 221:21, 231:9,
257:5
quite [3] - 184:10, 186:4, 197:5
R
radar [1] - 209:4
raise [3] - 240:21, 254:19, 254:23
raised [2] - 221:21, 239:16
raising [1] - 254:21
ran [1] - 244:2
rang [1] - 183:8
ranging [1] - 216:12
rarely [1] - 230:5
rate [1] - 248:18
rather [5] - 182:19, 254:20, 254:22,
257:5, 257:21
Ray [3] - 178:3, 206:8, 214:9
RAYZOR [1] - 178:15
reach [1] - 227:14
reached [2] - 217:10, 240:15
reaching [1] - 212:9
read [2] - 203:22, 214:16
readily [1] - 226:7
ready [3] - 180:23, 239:18, 253:20
real [4] - 193:5, 237:3, 241:16
realize [1] - 198:17
realized [6] - 184:13, 197:17, 199:6,
200:19, 200:25, 202:3
really [12] - 185:3, 189:21, 197:10,
203:11, 203:24, 205:16, 206:14, 229:7,
232:18, 232:22, 237:2, 254:20
realtime [1] - 194:25
reason [3] - 180:25, 203:11, 231:1
reasonable [1] - 206:24
reasons [2] - 192:3, 230:2
rebuttal [3] - 180:16, 180:19
rebutting [1] - 256:10
received [4] - 181:22, 223:18, 228:8,
228:18
receives [1] - 220:11
recent [1] - 248:16
Recessed [2] - 237:9, 258:4
recession [1] - 223:25
recognized [6] - 186:6, 186:10,
218:20, 219:12, 228:10, 231:20
recognizing [1] - 197:16
record [5] - 238:23, 240:2, 247:14,
249:21, 258:8
recorded [2] - 178:21, 247:3
red [11] - 184:24, 190:9, 197:7, 217:20,
230:24, 250:7, 250:8, 251:9, 253:9,
253:11, 253:12
reduce [1] - 196:5
reduced [1] - 196:25

referring [1] - 257:7
reflect [1] - 226:5
reflected [1] - 189:10
reflecting [1] - 217:5
reflections [1] - 189:6
reflects [2] - 236:5, 250:24
refracted [1] - 189:9
refractions [1] - 189:6
refracts [1] - 250:24
refused [1] - 232:12
regard [2] - 221:20, 231:15
regarded [1] - 219:7
regional [1] - 241:6
relate [1] - 218:22
related [1] - 242:19
relates [1] - 228:22
relationship [4] - 186:11, 220:20,
220:22, 222:1
relatively [3] - 247:21, 252:8, 256:23
release [1] - 230:13
relevance [1] - 255:21
Reliant [1] - 178:6
relied [1] - 228:15
relies [1] - 227:9
rely [2] - 219:24, 234:17
remained [1] - 207:18
remains [4] - 216:14, 216:16, 219:15,
225:3
remind [1] - 227:1
remove [1] - 239:7
repaired [1] - 245:17
repeat [1] - 245:10
replumb [1] - 204:9
report [3] - 180:16, 180:19, 180:20
Reporter [1] - 178:18
REPORTER'S [1] - 258:5
represent [2] - 184:5, 214:11
representatives [1] - 222:10
representing [2] - 233:4, 233:17
represents [1] - 236:1
reps [1] - 238:11
requested [1] - 253:21
required [6] - 180:18, 199:17, 203:24,
204:15, 205:15, 205:22
requirement [3] - 203:17, 204:8,
230:16
requires [1] - 206:23
research [2] - 199:10, 241:11
reserves [1] - 181:22
reservoir [3] - 189:13, 190:9, 191:16
resolve [1] - 233:6
resources [1] - 184:2
respected [1] - 212:5
respecting [1] - 219:10
respective [1] - 215:13
responding [1] - 205:1
response [3] - 204:18, 205:5, 255:11
responsibilities [1] - 243:1
responsibility [1] - 210:24
responsible [1] - 241:7
result [3] - 196:1, 206:1, 212:9

271
results [3] - 196:7, 196:25, 224:8
resume [1] - 253:21
revenue [4] - 200:21, 228:7, 228:8,
228:23
revenues [1] - 206:5
revolutionary [1] - 181:20
Richmond [1] - 242:9
rig [1] - 190:25
rights [1] - 183:25
rise [2] - 237:8, 253:25
risk [3] - 196:1, 213:22, 248:22
RMR [2] - 178:19, 258:11
road [1] - 188:7
Robin [1] - 206:10
rocks [1] - 250:23
rod [2] - 191:22, 191:23
role [3] - 243:22, 244:5, 244:6
roles [1] - 246:20
Rome [1] - 186:9
room [4] - 238:10, 239:1, 239:7, 240:8
roots [1] - 216:4
rope [2] - 188:1, 188:2
royalty [1] - 206:24
ROYSTON [1] - 178:15
RPR [1] - 178:19
Rule's [1] - 238:5
ruled [1] - 227:14
rules [1] - 219:9
rumor [1] - 228:15
run [1] - 189:22
rundown [1] - 193:13
runs [1] - 188:22
rush [1] - 193:1
Rusk [1] - 178:19
S
safer [1] - 195:7
sailed [1] - 246:16
sailor [3] - 245:7, 245:8, 245:9
sale [1] - 214:6
sales [2] - 228:1, 228:8
salt [1] - 250:23
sampling [1] - 196:17
Sanchez [3] - 178:19, 258:7, 258:11
sand [2] - 251:7
sands [1] - 250:23
Sarah [2] - 177:22, 184:4
sat [3] - 223:13, 223:23, 244:1
Saunders [1] - 178:10
saved [1] - 197:14
saw [8] - 184:12, 198:10, 201:15,
213:20, 215:24, 224:25, 230:24, 231:17
scalpel [3] - 247:18, 248:5, 248:7
scenario [1] - 197:5
schedule [1] - 254:4
schematic [1] - 255:13
Schlumberger [5] - 242:18, 242:20,
242:21, 242:22, 244:7
Schlumberger's [1] - 244:14
school [2] - 188:2, 244:19
schooling [1] - 244:21

science [2] - 199:4, 245:3
sciences [1] - 244:25
scientist [1] - 245:11
scissors [1] - 191:24
scope [2] - 180:20, 180:22
Scotland [2] - 218:23, 219:13
Scoulios [8] - 187:8, 240:19, 241:5,
241:10, 241:14, 241:24, 255:9
SCOULIOS [2] - 179:4, 241:19
Scoulios' [1] - 237:25
screen [10] - 184:24, 185:1, 185:5,
188:19, 204:18, 234:25, 249:5, 250:4,
253:12
sea [9] - 181:21, 187:10, 189:12,
193:12, 195:1, 245:5, 245:6
seabed [1] - 190:8
seas [1] - 182:2
seat [1] - 240:20
seated [3] - 181:12, 240:7, 254:2
second [3] - 188:15, 190:6, 227:20
secondly [2] - 230:11, 231:15
seconds [1] - 194:14
secured [1] - 227:5
sediment [3] - 250:16, 250:21, 250:22
see [69] - 183:1, 183:21, 184:25,
185:17, 186:8, 187:1, 187:11, 188:18,
188:19, 188:20, 188:22, 189:12,
189:16, 189:18, 189:24, 190:20,
190:21, 190:24, 191:16, 192:4, 192:18,
194:19, 197:3, 197:21, 197:23, 197:24,
198:4, 198:15, 199:11, 200:13, 202:12,
202:20, 203:14, 203:19, 204:4, 204:16,
204:18, 204:24, 205:14, 207:1, 207:12,
207:20, 209:1, 209:15, 210:23, 211:7,
211:14, 211:19, 217:4, 217:14, 218:5,
218:7, 218:9, 218:13, 220:14, 221:5,
223:17, 234:14, 234:24, 235:1, 235:12,
235:16, 247:11, 250:3, 250:6, 251:4,
252:4, 253:5
seeing [2] - 250:13, 252:15
seeking [1] - 206:15
sees [1] - 198:15
seismic [25] - 186:24, 187:6, 188:16,
188:24, 188:25, 201:19, 203:16, 215:6,
219:20, 224:1, 229:20, 243:10, 243:11,
245:21, 246:5, 246:7, 246:11, 246:13,
246:21, 247:10, 247:16, 248:1, 248:10,
249:15
select [1] - 229:3
selection [1] - 198:25
sell [6] - 182:11, 220:3, 220:6, 223:5,
227:10, 227:25
selling [4] - 221:7, 222:21, 224:16,
228:11
sells [1] - 219:18
send [1] - 209:22
sends [1] - 194:11
sense [6] - 185:10, 213:21, 217:16,
223:4, 226:1, 239:5
sensor [4] - 230:13, 230:14, 236:7
sent [3] - 204:18, 204:19, 235:3
sentence [1] - 209:9

sentences [1] - 239:22
separate [6] - 195:7, 213:17, 217:2,
217:6, 218:7, 221:24
separation [5] - 193:22, 199:21, 200:1,
226:20, 226:21
serial [1] - 241:15
serious [2] - 208:12, 254:8
service [5] - 186:17, 196:7, 212:8,
233:12, 242:2
services [2] - 182:14, 185:24
Session [1] - 177:10
set [2] - 221:10, 256:9
settled [1] - 257:24
several [4] - 213:12, 213:15, 224:5,
224:14
shales [1] - 251:8
shape [1] - 195:3
share [3] - 229:18, 229:20, 232:23
sharply [1] - 195:23
sheet [2] - 251:23, 252:9
shelf [2] - 184:18, 222:25
shifted [1] - 191:17
ship [22] - 182:2, 185:9, 185:11, 187:7,
187:14, 187:18, 187:22, 188:21, 191:2,
191:13, 195:1, 195:11, 195:13, 196:12,
200:20, 200:21, 200:22, 201:3, 209:22,
241:11, 246:15, 248:25
ship's [1] - 245:4
shipboard [1] - 219:2
shipping [2] - 210:12, 210:16
ships [1] - 193:12
shirt [1] - 181:1
shoot [1] - 196:11
short [1] - 233:18
shorter [2] - 187:11, 252:23
show [45] - 185:10, 185:19, 186:23,
190:5, 199:25, 212:25, 213:4, 213:14,
213:16, 213:24, 214:5, 214:23, 216:2,
216:19, 217:11, 217:19, 217:22,
219:24, 222:9, 223:6, 224:4, 225:2,
225:22, 226:2, 226:4, 226:8, 226:12,
226:20, 228:20, 228:22, 229:17,
230:19, 230:23, 232:2, 232:17, 233:24,
233:25, 234:21, 234:22, 235:9, 236:16,
236:17, 236:19, 252:12
showed [1] - 199:18
shown [3] - 213:17, 231:24, 231:25
shows [9] - 197:5, 220:11, 221:6,
222:4, 223:11, 224:2, 230:4, 230:5,
231:25
side [11] - 181:24, 186:15, 195:10,
197:6, 197:21, 199:19, 207:22, 208:4,
218:11
side-by-side [1] - 197:6
signal [3] - 194:20, 236:7
signals [3] - 189:10, 194:11, 194:13
signed [3] - 208:19, 208:21, 221:16
Sim's [1] - 180:5
Simon [1] - 201:8
simple [2] - 181:18, 247:21
simplest [1] - 251:20

272
simply [7] - 212:6, 215:23, 218:10,
220:19, 221:14, 226:16, 251:23
Sims [1] - 206:8
single [11] - 183:8, 194:21, 201:3,
208:11, 211:3, 213:25, 221:5, 223:20,
224:3, 227:6, 234:10
sit [1] - 202:24
sitting [1] - 234:14
six [4] - 193:13, 197:13, 197:15,
252:22
skin [1] - 225:12
slacks [1] - 192:18
slice [2] - 189:18, 256:1
slide [14] - 209:15, 214:16, 214:25,
224:25, 229:16, 234:25, 250:10, 251:4,
251:5, 251:23, 252:3, 253:5, 257:1,
257:7
Slide [1] - 251:14
slides [2] - 215:24, 221:2
slightly [1] - 191:10
slow [2] - 215:21, 233:2
slower [1] - 196:2
slowing [1] - 232:20
slowly [7] - 216:13, 222:18, 227:3,
239:25
slump [1] - 224:1
small [5] - 188:13, 189:21, 216:4,
245:16, 253:15
smaller [1] - 230:8
smart [1] - 194:6
SMYSER [1] - 177:16
software [2] - 218:14, 219:1
solemnly [1] - 240:23
solution [1] - 186:21
solutions [2] - 215:9, 217:13
someday [1] - 205:2
someone [1] - 199:4
sometimes [10] - 189:15, 192:6, 194:3,
194:5, 215:14, 231:2, 236:6, 252:22,
252:23, 256:24
somewhere [1] - 248:2
sonogram [4] - 247:13, 247:16, 248:2,
252:8
soon [1] - 199:9
sophisticated [1] - 234:4
sorry [4] - 216:1, 235:19, 237:20,
251:18
sort [3] - 191:23, 243:8, 245:14
sought [1] - 213:2
sound [9] - 236:3, 247:12, 247:14,
249:20, 250:1, 250:19, 250:25
sounded [1] - 246:10
source [6] - 188:21, 188:24, 189:3,
247:12, 249:16, 249:17
south [1] - 244:22
SOUTHERN [1] - 177:1
space [4] - 202:16, 202:19, 202:23
spacial [1] - 196:17
speaking [1] - 240:3
special [4] - 220:18, 236:1, 236:2,
236:6
specific [2] - 213:9, 232:11
specifically [1] - 216:20

Spectrum [1] - 219:4
spectrum [1] - 200:11
spend [6] - 199:7, 199:10, 203:7,
204:1, 206:18, 248:20
spent [3] - 246:12, 246:17
spot [2] - 190:18, 191:12
spots [2] - 197:7, 197:13
stage [1] - 240:14
Stallings [1] - 178:3
stand [2] - 234:15, 235:24
standard [2] - 216:15, 218:1
standing [1] - 233:10
start [6] - 189:12, 251:5, 252:10,
253:9, 253:10, 254:19
started [5] - 187:8, 205:9, 232:6,
243:23, 248:25
starting [2] - 217:1, 237:21
statements [3] - 181:3, 181:13, 233:23
states [1] - 244:1
STATES [2] - 177:1, 177:11
States [16] - 181:23, 198:16, 204:17,
209:20, 210:20, 212:6, 224:17, 224:18,
227:12, 227:21, 227:23, 234:5, 235:7,
236:23, 236:24, 241:9
Statoil [3] - 224:5, 224:6, 224:7
StatoilHydro [2] - 204:19, 204:20
stayed [2] - 190:21
steal [1] - 234:12
stealing [1] - 217:14
steer [7] - 182:4, 185:11, 188:4, 192:5,
192:13, 194:24, 222:24
steerable [9] - 182:3, 203:14, 203:16,
203:23, 205:4, 205:5, 205:11, 205:18,
205:22
steerage [1] - 198:1
steering [36] - 181:24, 185:14, 185:25,
186:5, 193:20, 193:25, 195:17, 196:4,
196:17, 197:11, 202:16, 204:7, 214:14,
214:17, 214:18, 214:23, 215:4, 215:18,
215:19, 215:20, 215:25, 216:1, 216:2,
219:25, 221:3, 227:7, 231:6, 231:21,
235:16, 235:19, 235:25, 256:3, 256:4,
256:7, 256:8
steers [2] - 186:16, 218:6
stenography [1] - 178:21
step [6] - 186:22, 202:12, 226:9,
242:16, 254:2
step-by-step [1] - 226:9
steps [1] - 240:14
stick [1] - 193:4
still [10] - 183:10, 183:12, 184:24,
189:15, 203:25, 210:8, 216:7, 218:25,
222:7, 223:1
stop [3] - 182:25, 183:11, 209:25
stopping [1] - 210:16
story [6] - 218:12, 222:2, 226:16,
255:3, 255:12, 255:17
straight [6] - 192:23, 193:21, 193:23,
195:11, 226:8, 246:19
strategies [1] - 216:22
streamer [32] - 186:24, 187:2, 187:6,
187:13, 188:22, 189:7, 189:17, 190:2,

192:2, 193:22, 194:3, 194:6, 194:14,
194:19, 195:6, 200:1, 201:20, 213:20,
215:4, 215:24, 217:22, 217:24, 219:14,
223:22, 226:19, 226:21, 241:16, 250:3,
250:5
streamers [45] - 181:25, 182:1, 182:4,
185:9, 185:16, 186:16, 187:7, 187:14,
187:17, 187:19, 187:21, 187:23, 188:6,
188:11, 189:25, 191:11, 192:5, 192:13,
192:20, 193:21, 194:2, 194:24, 195:3,
195:13, 195:21, 196:5, 199:21, 203:15,
203:16, 205:4, 205:5, 205:19, 213:17,
213:22, 216:23, 236:2, 247:1, 247:5,
247:10, 249:1, 249:22, 249:23, 252:20
Street [4] - 177:20, 177:24, 178:6,
178:16
stretched [2] - 225:8
strict [1] - 230:12
strips [2] - 193:8, 193:15
strive [1] - 256:19
strongly [1] - 209:7
struck [1] - 239:2
structures [1] - 182:5
studied [1] - 207:21
study [2] - 207:15, 242:6
studying [1] - 244:24
stuff [2] - 210:10, 245:14
subject [3] - 215:3, 217:7, 244:9
submits [2] - 188:24, 240:13
subsequently [1] - 226:11
subsurface [3] - 220:12, 247:8, 251:24
success [3] - 204:22, 219:8, 248:18
successful [2] - 186:4, 243:7
successfully [1] - 245:25
sue [1] - 224:15
suffice [1] - 225:18
suggest [1] - 239:7
suggestion [2] - 198:11, 239:8
Suite [3] - 177:16, 178:12, 178:16
superior [1] - 216:10
supplied [1] - 227:21
supplier [1] - 234:4
supply [2] - 227:20, 229:11
surface [1] - 247:11
surprise [2] - 207:14, 216:15
surprised [1] - 239:2
surprising [1] - 203:4
surprisingly [1] - 196:8
survey [37] - 183:8, 186:7, 186:20,
187:6, 188:16, 189:16, 189:19, 189:25,
190:3, 190:7, 190:10, 190:23, 190:25,
191:1, 191:4, 191:15, 196:12, 196:13,
206:5, 207:3, 208:11, 215:7, 220:10,
221:6, 224:7, 227:17, 228:4, 228:25,
229:5, 229:11, 229:14, 252:4, 252:8,
252:9, 252:16, 253:3
surveys [38] - 182:13, 185:18, 189:24,
190:14, 196:2, 196:14, 203:18, 203:20,
206:4, 206:6, 206:7, 206:17, 207:5,
207:7, 215:17, 215:19, 216:1, 218:2,
219:21, 219:22, 227:1, 227:6, 227:10,

273
227:12, 227:16, 228:11, 229:13,
231:13, 234:3, 235:1, 235:5, 235:20,
235:21, 243:10, 251:25, 252:2, 252:4
Susan [1] - 178:2
swapping [1] - 257:11
swear [3] - 238:7, 238:13, 240:23
switch [1] - 184:8
sworn [1] - 241:20
swung [1] - 195:22
system [16] - 181:20, 181:23, 185:15,
188:10, 198:2, 198:3, 199:21, 204:21,
212:21, 213:2, 219:2, 233:5, 233:9,
235:24, 236:10
Systems [3] - 210:13, 216:9, 218:22
systems [5] - 186:12, 200:13, 219:14,
230:21, 241:16
Systems' [1] - 202:15
T
talented [2] - 216:20, 243:6
talks [3] - 205:18, 220:4, 226:21
tangled [3] - 190:2, 190:5, 191:21
tangles [6] - 191:19, 192:3, 192:12,
195:18, 196:1, 196:7
tangling [1] - 213:22
tank [2] - 252:10, 253:3
tanker [1] - 245:24
target [1] - 203:5
task [2] - 185:17, 191:14
team [1] - 214:10
teamed [1] - 186:8
tech [1] - 205:10
technical [3] - 219:12, 223:19, 236:19
technological [1] - 185:5
technologies [4] - 185:8, 225:11,
225:14, 236:8
technology [39] - 182:3, 182:8,
182:24, 184:2, 184:17, 186:7, 191:5,
195:1, 195:21, 196:2, 196:21, 197:18,
198:10, 198:19, 199:8, 200:10, 200:12,
201:4, 201:5, 201:7, 201:12, 201:24,
202:8, 202:10, 202:18, 205:12, 206:2,
206:23, 207:3, 207:6, 207:9, 207:15,
213:7, 215:8, 216:3, 222:23, 236:7,
236:8, 241:17
television [1] - 184:23
ten [1] - 237:7
ten-minute [1] - 237:7
tendency [2] - 192:19, 195:13
tender [2] - 204:12, 204:18
tenders [3] - 204:4, 204:6, 204:14
testified [1] - 241:20
testify [2] - 180:20, 180:21
testimony [3] - 180:5, 221:15, 240:24
TEXAS [1] - 177:1
Texas [12] - 177:4, 177:17, 178:7,
178:13, 178:16, 178:20, 186:25,
241:12, 244:22, 244:24, 245:1
THE [48] - 177:11, 177:15, 180:1,
180:17, 180:21, 181:8, 181:11, 181:16,
208:22, 208:24, 211:11, 212:10,
212:14, 215:21, 216:13, 222:18, 227:3,

231:4, 233:14, 237:5, 237:15, 237:18,
238:2, 238:7, 238:12, 238:15, 238:17,
238:20, 238:23, 239:14, 239:18,
239:23, 240:6, 240:20, 241:1, 249:8,
249:11, 253:18, 254:2, 254:12, 254:16,
254:20, 255:10, 256:17, 257:12,
257:20, 257:23, 258:3
themselves [5] - 196:16, 197:4,
197:12, 198:3, 254:6
theories [1] - 227:10
therefore [1] - 209:12
they've [5] - 183:12, 186:21, 207:19,
231:18, 256:9
thin [1] - 251:23
thinking [1] - 205:2
thinks [2] - 205:18, 205:24
third [2] - 220:23, 230:19
THOMAS [2] - 179:4, 241:19
THOMPSON [5] - 180:18, 237:11,
237:17, 238:5, 239:10
Thompson [1] - 178:14
thousands [1] - 192:10
threat [1] - 233:11
three [11] - 184:7, 199:17, 199:24,
204:10, 223:13, 234:2, 235:19, 235:20,
247:7, 249:15, 252:7
three-dimensional [1] - 247:7
tie [2] - 181:1
Tim [1] - 184:4
Timothy [1] - 177:23
tirelessly [1] - 201:10
today [14] - 183:18, 187:4, 189:16,
190:18, 199:3, 200:8, 207:18, 215:20,
216:7, 218:19, 242:17, 244:5, 244:6,
244:7
together [10] - 182:7, 186:9, 196:18,
220:15, 221:12, 221:19, 222:3, 228:17,
229:19, 251:15
Tom [2] - 240:19, 241:5
took [12] - 182:24, 183:1, 193:10,
193:11, 197:13, 201:5, 206:1, 206:4,
209:25, 212:3, 236:7
top [7] - 184:25, 185:8, 188:23, 209:3,
217:15, 220:17, 231:10
topic [1] - 231:7
topics [1] - 184:8
TORGERSON [12] - 212:12, 212:15,
215:23, 216:14, 222:19, 227:4, 231:5,
239:11, 254:14, 255:12, 256:1, 257:8
Torgerson [8] - 178:3, 212:11, 214:9,
215:21, 233:14, 233:19, 235:18, 256:15
Torgerson's [2] - 254:24, 255:10
Toro [1] - 215:11
total [3] - 206:5, 228:7
tough [1] - 203:22
touted [1] - 204:20
tow [5] - 187:25, 188:1, 188:2, 188:13
towed [1] - 185:9
towing [2] - 188:5, 195:24
trade [4] - 196:23, 222:9, 224:4,
231:25
tradition [1] - 181:14

trailer [2] - 188:13, 195:23
trailers [1] - 195:24
trainee [2] - 241:11, 246:9
trainees [1] - 246:22
Transcript [1] - 178:21
transcript [1] - 258:8
transcription [1] - 178:22
travels [3] - 250:1, 250:20, 250:21
TRIAL [1] - 177:8
trial [4] - 185:20, 214:2, 232:25, 254:4
Triantafyllou [2] - 200:7
tried [7] - 188:12, 193:10, 220:15,
232:13, 236:9, 239:25, 256:9
trouser [1] - 192:17
truck [3] - 210:7, 210:8
true [3] - 185:22, 215:23, 256:4
trusted [1] - 231:8
truth [4] - 213:5, 240:24, 240:25
try [9] - 190:4, 191:23, 221:11, 241:1,
241:2, 248:21, 248:22, 251:3, 253:23
trying [5] - 191:2, 210:18, 228:17,
235:23, 250:18
Tsou [2] - 177:22, 184:4
turn [15] - 192:24, 193:14, 195:20,
195:21, 195:23, 196:6, 199:20, 200:2,
214:4, 218:11, 224:10, 224:15, 226:19,
226:23, 251:14
TV [1] - 188:25
twice [1] - 228:7
two [19] - 185:8, 186:11, 201:9,
201:25, 207:13, 210:25, 217:2, 217:19,
218:7, 220:15, 220:16, 221:12, 223:13,
225:11, 225:13, 227:9, 238:25, 251:20,
256:18
type [4] - 189:2, 200:9, 233:6, 251:7
types [2] - 207:5, 214:23
U
U.S [10] - 227:15, 227:22, 235:3, 241:6,
242:7, 242:10, 243:12, 248:24, 257:2,
257:9
ultimately [7] - 199:16, 202:11, 229:2,
243:7, 246:15, 251:10, 255:20
uncles [1] - 245:5
under [10] - 189:8, 189:14, 189:18,
193:18, 200:5, 200:13, 209:3, 221:24,
222:7, 255:1
underneath [7] - 181:21, 189:5,
189:12, 190:8, 247:8, 247:11, 251:24
unique [1] - 225:13
United [16] - 181:22, 198:16, 204:17,
209:20, 210:20, 212:6, 224:17, 224:18,
227:12, 227:21, 227:23, 234:4, 235:7,
236:23, 241:9
uNITED [1] - 177:1
UNITED [1] - 177:11
University [1] - 244:24
university [1] - 245:1
unlawfully [1] - 206:4
unless [1] - 253:23

274
unlimited [2] - 180:8, 229:11
unquestionably [2] - 224:18, 228:6
unveiling [1] - 222:12
up [43] - 182:2, 184:22, 186:5, 186:8,
187:3, 187:23, 188:8, 189:6, 189:9,
189:24, 191:11, 191:22, 192:25,
193:15, 196:11, 199:9, 201:16, 202:7,
202:24, 204:6, 209:25, 217:24, 220:8,
224:21, 233:10, 233:19, 233:22,
234:25, 235:13, 236:5, 237:15, 240:1,
240:8, 244:19, 244:20, 246:2, 246:11,
249:5, 249:12, 255:8, 256:24, 257:2,
257:19
upper [1] - 184:25
useful [4] - 224:13, 226:5, 252:8,
252:9
uses [3] - 182:12, 199:15, 218:1
V
valid [4] - 211:5, 211:13, 212:2, 213:13
value [2] - 197:16, 203:15
Vegas [1] - 224:4
velocities [1] - 251:6
velocity [1] - 250:1
verifiable [1] - 228:21
version [1] - 190:1
versus [3] - 228:3, 228:11, 228:18
VESELKA [1] - 177:16
vessel [6] - 186:24, 187:6, 188:16,
192:10, 252:20
vessels [8] - 186:20, 202:21, 204:23,
222:23, 229:12, 230:25, 234:6, 235:4
vibes [1] - 239:2
VICKERY [1] - 178:15
video [8] - 197:3, 198:11, 198:23,
201:15, 205:17, 205:18, 205:20, 224:19
Volume [1] - 177:9
volumes [1] - 218:3
VS [1] - 177:5
W
Wade [3] - 178:4, 217:18, 217:20
waited [1] - 223:13
waiter [1] - 245:15
waiting [1] - 253:23
wake [2] - 192:16, 192:20
walk [3] - 193:8, 199:14, 207:3
walked [1] - 246:7
Walker [1] - 206:10
walking [1] - 246:11
wants [7] - 189:23, 190:24, 195:5,
224:21, 227:5, 228:5, 237:19
Washington [1] - 177:20
waste [1] - 253:15
watching [2] - 187:21, 223:17
water [12] - 188:7, 188:18, 188:23,
189:8, 194:7, 195:14, 213:23, 219:3,
236:4, 247:8, 249:25, 250:21
waters [4] - 227:18, 257:2, 257:9,
257:10
wave [3] - 189:2, 249:20
waves [2] - 188:8, 191:13
waving [2] - 255:3, 256:15
Website [5] - 196:19, 197:4, 199:23,
205:15, 205:17
week [2] - 192:11, 244:3
weeks [3] - 183:21, 207:13, 246:18
wells [1] - 248:18
Western [2] - 217:8, 223:14
WesternGeco [136] - 181:18, 181:22,
182:3, 182:9, 182:13, 182:15, 183:3,
183:24, 184:5, 184:15, 185:15, 185:23,
185:24, 186:16, 188:10, 188:16, 192:7,
196:11, 196:15, 197:17, 197:20, 198:1,
198:5, 198:6, 198:9, 198:17, 201:10,
202:3, 202:17, 202:23, 202:24, 203:1,
203:2, 206:8, 206:10, 206:18, 206:20,
207:6, 207:10, 207:22, 209:7, 209:10,
212:22, 213:1, 213:4, 213:6, 214:2,
214:6, 214:17, 215:16, 215:25, 216:4,
216:16, 216:24, 218:2, 218:21, 219:7,
219:17, 219:20, 219:24, 220:1, 220:3,
220:10, 220:13, 221:9, 221:18, 222:2,
222:4, 222:6, 222:10, 222:16, 222:21,
222:22, 222:23, 223:7, 223:9, 223:12,
223:16, 223:18, 223:21, 223:23, 224:2,
224:5, 224:9, 224:11, 224:21, 225:7,
225:8, 225:18, 226:2, 226:23, 226:24,
227:4, 227:9, 227:24, 228:1, 228:5,
228:13, 229:2, 229:10, 229:14, 229:19,
230:1, 230:12, 230:17, 231:1, 231:10,
232:1, 232:2, 232:5, 232:10, 232:11,
232:13, 232:18, 232:19, 232:25,
235:14, 240:19, 241:4, 241:8, 241:10,
241:14, 241:15, 242:1, 242:2, 242:7,
242:8, 242:14, 242:19, 242:21, 243:2,
243:8, 243:10, 244:10, 244:15, 258:1
WESTERNGECO [1] - 177:4
WesternGeco's [24] - 182:8, 182:24,
183:6, 198:19, 199:13, 203:5, 205:13,
206:2, 208:11, 209:24, 211:13, 214:13,
214:21, 217:8, 228:14, 229:9, 229:17,
230:20, 232:4, 233:1, 241:6, 241:16,
243:16, 244:7
WG [1] - 209:7
whereas [2] - 244:9, 247:18
white [4] - 197:7, 225:1, 257:8, 257:9
whole [1] - 240:25
wide [1] - 252:7
wider [1] - 195:5
wife [1] - 193:6
wildly [1] - 228:24
willfully [3] - 231:11, 232:3, 234:12
willfulness [1] - 231:9
WILLIAMS [1] - 178:15
willing [1] - 202:4
win [2] - 205:23, 229:10
wing [1] - 218:6
wings [2] - 194:4, 217:24
wish [2] - 236:25, 240:9
WITNESS [2] - 179:3, 249:11
witness [6] - 237:22, 239:21, 240:14,
240:19, 241:5, 249:7

witnesses [8] - 180:19, 183:22, 204:5,
211:20, 238:10, 239:24, 249:9
women [1] - 214:12
won [1] - 205:7
wonder [1] - 240:1
wondering [1] - 239:3
Woodway [1] - 178:12
word [2] - 186:15, 188:25
words [4] - 225:8, 226:14, 227:4,
252:21
workman [2] - 226:13, 226:21
works [4] - 194:2, 200:13, 200:15,
206:10
world [10] - 223:23, 229:12, 234:5,
235:5, 235:10, 241:16, 242:11, 243:14,
243:17, 244:3
world's [1] - 200:9
worldwide [2] - 243:18, 243:22
worry [1] - 190:1
worse [8] - 183:12, 183:14, 183:17,
183:20, 195:24, 196:2, 209:1, 209:17
worth [9] - 201:3, 201:12, 203:13,
207:4, 237:21, 248:3, 257:1
wow [1] - 185:1
written [1] - 208:7
X
XY [1] - 251:20
Y
y'all [1] - 254:12
year [2] - 203:17
years [10] - 190:17, 190:18, 190:19,
191:15, 211:1, 216:15, 223:13, 231:7,
241:13
yellow [1] - 200:1
yesterday [1] - 238:19
York [2] - 177:25
you-all [1] - 247:19
yourself [1] - 241:1
Z
Zajac [3] - 201:9, 222:10, 222:16
zoom [1] - 186:25

Locascio WesternGeco Trial Vol. 1 PM PDF

Caricato da

Informazioni sul documento

Titolo originale

Copyright

Formati disponibili

Condividi questo documento

Condividi o incorpora il documento

Opzioni di condivisione

Hai trovato utile questo documento?

Questo contenuto è inappropriato?

Copyright:

Formati disponibili

Locascio WesternGeco Trial Vol. 1 PM PDF

Caricato da

Copyright:

Formati disponibili

Case 4:09-cv-01827 Document 427 Filed in TXSD on 07/24/12 Page 1 of 98

UNITED STATES DISTRICT COURT

July 23, 2012

BEFORE THE HONORABLE KEITH P. ELLISON

15 FOR THE PLAINTIFF:

Case 4:09-cv-01827 Document 427 Filed in TXSD on 07/24/12 Page 2 of 98

1 FOR ION GEOPHYSICAL CORPORATION:

PORTER & HEDGES LLP

FOR FUGRO GEOTEAM, INC.:

Case 4:09-cv-01827 Document 427 Filed in TXSD on 07/24/12 Page 3 of 98

Case 4:09-cv-01827 Document 427 Filed in TXSD on 07/24/12 Page 4 of 98

THE COURT: Mrs. Loewe is checking with the

2 jurors what hours they want to work, so we'll have that

After thought, I am going to allow

5 Mr. Sim's testimony. It will not be before Monday,

If defendants do want to file another

11 Daubert motion, they're certainly entitled to. I do agree

Okay. Do you want to tell Mr. Parker

MR. BURGERT: Your Honor, and will be we be

16 allowed to file a rebuttal report?

THE COURT: Yes. Yes.

MR. THOMPSON: Your Honor, will be required for

19 rebuttal report or will our rebuttal witnesses be allowed

20 to testify outside the scope of their initial report?

THE COURT: They'll be allowed to testify

22 outside the scope.

Okay, Mr. Parker, we're ready.

For those of you who came in late, the

25 only reason I'm so casually dressed is I can't get my hand

Case 4:09-cv-01827 Document 427 Filed in TXSD on 07/24/12 Page 5 of 98

1 through a dress shirt much less tie a tie. My apologies

Opening statements, 45 minutes maximum. I

CASE MANAGER: We're going to need a few

7 minutes. They're not all back there.

THE COURT: They're not all back yet?

CASE MANAGER: No.

(The following was held before the jury)

THE COURT: Members of the jury, please be

Okay. We begin with opening statements.

14 By tradition, plaintiff always goes first.

MR. LOCASCIO: May I proceed, Your Honor?

THE COURT: You may.

MR. LOCASCIO: This is a big case, but it is

18 also a simple case. WesternGeco, through invention, a lot

20 investment, developed a revolutionary system to image the

Case 4:09-cv-01827 Document 427 Filed in TXSD on 07/24/12 Page 6 of 98

These streamers you'll hear

2 are up to 6 miles long behind a ship in the high seas.

5 moveable structures on the planet.

ION and Fugro infringed these

7 patents. Since 2007, ION and Fugro have partnered together

How does their partnership

11 work? Well, ION makes equipment. They sell that equipment

WesternGeco on the other hand,

14 makes its equipment and performance services. So this

15 collaboration of ION and Fugro compete with WesternGeco to

The Court has already decided

18 that ION and Fugro infringed one of these patents. So you

20 how many of these patents and claims they infringed, and

What is infringement? It's

23 when you take something that doesn't belong to you. ION

25 something, the right thing to do is to stop using it, and

Case 4:09-cv-01827 Document 427 Filed in TXSD on 07/24/12 Page 7 of 98