The Many Benefits of Mediating Oil and Gas Disputes

The mediation process provides ample benefits in the oil and gas industry, including the following:

Cost Effectiveness

No other method of alternative dispute resolution or litigation offers the same cost effectiveness as mediation. In mediation, the parties split the costs of mediation unless there is some agreement to the contrary. They are often able to resolve the case during the mediation session or series of sessions. This helps to reduce all aspects of litigation costs, including costs for thorough discovery, pre-trial preparation and trial preparation. Even if there is a money award that is negotiated, it may be different than what a jury may have awarded with contentious litigation.

Time Effectiveness

Oil and gas experts know how important time is in this industry. If decisions or enforcement is withheld, there can be substantial investments in jeopardy. Parties to mediation do not have to wait for a court date. They do not even have to wait for a complaint to be filed and the standard 30 days for it to be answered. Instead, the parties can make a date to mediate the dispute and possibly reach a decision based only on their own schedules and that of their selected mediator.

Confidentiality

Oil and gas disputes may involve information that companies and regulatory agencies prefer to keep private. Additionally, these disputes may involve other countries. Mediation allows the parties to meet privately and resolve the matter outside the public domain.

Flexibility

When dealing with oil and gas disputes, there may be many unique issues involved. For example, if there are disputes with companies in different states or countries, jurisdictional issues may arise. In mediation, the parties can reach an agreement about which laws apply. They can also make every other decision of meaning, including who to select as the mediator to help them resolve their dispute and the ultimate agreement that they reach. This prevents the surprise often associated with allowing a judge or jury to make a monumental decision.