`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`
`DRIL-QUIP,INC.,
`Petitioner
`
`Vs
`
`FMC TECHNOLOGIES, INC.,
`Patent Owner
`
`Patent No. 10,689,921
`Filing Date: Feb. 5, 2019
`Issue Date: June 23, 2020
`
`Title: ONE-PIECE PRODUCTION/ANNULUS BORE STAB WITH INTEGRAL
`FLOW PATHS
`
`Post Grant Review No.: UNASSIGNED
`
`DECLARATION OF BRIAN CHRISTIE
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`Dril-Quip, Exh. 1006, Page 1 of 14
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`I, Brian Christie, declare as follows:
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`I. BACKGROUND
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`I, Brian Christie, hereby declare that the following is true and correct.
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`I am overthe age of 18, competent to makethis declaration, and I am familiar with
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`the facts below. I offer this declaration in support of Dril-Quip Inc. (“Dril-Quip”)’s
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`Petition for Post Grant Review of U.S. Patent No. 10,689,921 (the “’921 Patent’).
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`The statements madein this Declaration are based on my own personal
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`knowledgeand experience.
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`I have almost 40 years of experience in sales administration, with
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`almost 33 of those years spent as a Sales Administration Managerat Dril-Quip.
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`I
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`am currently employed by Dril-Quip as a Sales Administration Manager.
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`During my tenure as Sales Administration Managerat Dril-Quip,I have
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`been and am responsibleforall sales quotations, sales orders, tenders, and othersales
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`documentation of Dril-Quip’s subsea systems.
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`It is a regular practice of Dril-Quip
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`for the Sales Administration Manager to review and sign this sales documentation.
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`Also during my time as Sales Administration Manager, it is and has
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`been a regular practice of Dril-Quip to keep electronic archives of all sales
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`documentation.
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`I keep these documents in a folder on my computer.
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`Dril-Quip, Exh. 1006, Page 2 of 14
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`I was personally involved in the sale of Dril-Quip’s Subsea Tree
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`Assembly to Mersk Olie OG Gas A.S. (“Maersk”). The Subsea Tree Assembly
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`design includeda stab sub with integrated fluid flow paths.
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`The sale to Maersk of this Subsea Tree Assembly for Maersk’s Regnar
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`field development project (the “Regnar Project’) was Dril-Quip’s first subsea tree
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`award and an important event in Dril-Quip’s company history. Since the Regnar
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`Project, this Subsea Tree Assembly design including the stab sub with integrated
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`fluid flow paths was used for multiple subsequent projects. For example, Dril-Quip
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`has implemented this stab sub feature in projects for the following customers:
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`Conoco (CMSIII, 2001-2002), GDF (Anglia, 2002-2003), Exxon Mobil (Arthur,
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`2003-2004), AGR Peak (Durango, 2011-2012), Tullow (Wissey, 2011-2012), RWE
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`(Topaz, 2013-2014), Melrose Resources (Kaliakra, 2012-2013), BWE (Tortue,
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`2017-2018), and BSOG (Midia, 2019-2020). This list is by no means exhaustive; it
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`is merely a sampling of projects in which the stab sub with integrated fluid flow
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`paths was implemented.
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`THE SUBSEA TREE ASSEMBLY WAS ON SALE NO LATER THAN
`FEBRUARY5, 2019
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`Dril-Quip’s Subsea Tree Assembly was on sale and commercially
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`available before February 5, 2019.
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`At the request of Maersk, Dril-Quip began designing the Subsea Tree
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`Dril-Quip, Exh. 1006, Page 3 of 14
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`
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`subsea well, Nils-3. Exhibit 1008 is a Specification for Mudline Suspension/Subsea
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`Wellhead System, Tubing Hanger, Subsea Tree and Wellhead Protection frame
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`Components for
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`[Regnar] Field (“Specification”) dated February 1992 that
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`Dril-Quip submitted to Maersk. Section 8.0 of the Specification is the specification
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`for the Subsea Tree Assembly and Section 8.2 includes the specification for the stab
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`sub componentof the Subsea Tree Assembly. This Specification was drafted near
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`the time that the Subsea Tree Assembly was designed by Dril-Quipatthe requestof
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`Maersk by someone with knowledgeof the information. This Specification is kept
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`in the ordinary course of business at Dril-Quip and as a regularpractice.
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`The Specification was drafted as a result of a General Service Contract
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`2173 fully executed as of January 28, 1991, attached hereto as Exhibit 1009.
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`I
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`reviewed and executed the General Service Contract on January 21, 1991 on behalf
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`of Dril-Quip. The General Service Contractis kept in the ordinary course of business
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`at Dril-Quip and asa regular practice.
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`THE DESIGN OF THE SUBSEA TREE ASSEMBLY WAS SOLD NO
`LATER THAN FEBRUARY5,2019
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`11. Dril Quip’s Subsea Tree Assembly wassold before February 5, 2019.
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`On July 20, 1992, Maersk placed an order to purchase a Subsea Tree
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`Assembly from Dril-Quip. Exhibit 1011 is a Purchase Order dated July 20, 1992
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`prepared by Maersk in accordance with the Specification and acknowledged by
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`Dril-Quip (Exhibit 1008). A purchase order is a commitment to buy authorizing a
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`Dril-Quip, Exh. 1006, Page 4 of 14
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`seller to deliver goods with paymentto be madeata later date. This Purchase Order
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`is consistent with and similar in format to other purchase orders Dril-Quip has
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`received from Maersk and other customers. The terms and conditions of Maersk’s
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`offer are included in the purchase order. The Purchase Orderlists Maersk’s facility
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`in Esbjerg, Denmark as the shipping address and its office in Copenhagen asits
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`billing address. It also lists the part descriptions, quantities, and prices, and specifies
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`a delivery date for January 3, 1993. Dril-Quip has entered into countless purchase
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`orders with Maersk.
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`Inthe earlier years, these were standalone purchase orders such
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`as with the Regnar Project, but ourrelationship later moved to long term (typically
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`4 year) contracts for purchased goods, against which Maersk would issue purchase
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`orders or call off orders. All information wasentered into the Purchase Order and
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`signed by someone with knowledgeofthe information. This sales documentationis
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`kept in the ordinary course of business at Dril-Quip and as a regularpractice.
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`On December1, 1992, Dril-Quip issued a Sales Order. Exhibit 1012 is
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`a Sales Order dated December 1, 1992 prepared by Dril-Quip in response to the
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`Purchase Order (Exhibit 1011) placed by Maersk. Sales orders are documents
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`prepared bytheseller and issued to the buyerfor the purposes ofconfirming thesale
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`of the productsor services involvedin the particular transaction. It typically contains
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`details about the sale, including the quantity, quality, and price of the purchased
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`goodsor services. This Sales Orderis consistent with and similar in format to other
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`Dril-Quip, Exh. 1006, Page 5 of 14
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`sale orders prepared by Dril-Quip for Maersk and other customers.
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`It includes
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`equipmentcategories, part numbers,part descriptions, part quantities, pricing, and a
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`delivery date. The pricing was redacted from the executed Sales Order in the
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`ordinary course of business. Exhibit 1007 is a draft Sales Order thatI prepared at
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`the time of the sale, which includes the pricing redacted from the executed Sales
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`Order. Dril-Quip has issued countless sales orders to Maersk. As with the purchase
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`orders, Dril-Quip initially issued standalone sales orders such as with the Regnar
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`Project butlater on issued sales orders against long term contracts. This Sales Order
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`showsthat the Subsea Tree Assembly had a “Tubing Hanger Stab Sub — 4-1/16’
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`5,000 PSI W.P. with Integral Annulus, D.H.S.V. and Pressure Monitoring Ports.”
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`Exhibit 1012.
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`I reviewed and executed the Sales Order on behalf of Dril-Quip. The
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`Sales Order is keptin the ordinary course of business at Dril-Quip and as a regular
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`The components ofthe Subsea Tree Assembly including the Stab Sub
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`had already been built by the date of the Sales Order. They were built at least on or
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`before December 1, 1992, when they were shipped from Dril-Quip’s plant in
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`Houston, Texas to Dril-Quip’s Facilities in Aberdeen, Scotland. Exhibit 1013 is a
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`Packing List showing the components of the Subsea Tree Assembly that were
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`shipped from Houston, Texas to Aberdeen, Scotland. A packinglist is a detailed
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`statement prepared bya seller that accompaniesdelivered sold goodsor services, so
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`Dril-Quip, Exh. 1006, Page 6 of 14
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`
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`that the recipient can verify the contents of the sold good orservice. Packinglists
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`typically include a description, quantity, and weight of the sold goods and services
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`received. It is a regular businesspractice of Dril-Quip to issue packinglists with its
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`shipped goods and services. This Packing List is consistent with and similar in
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`format to other packing lists prepared by Dril-Quip for Maersk and other customers.
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`This Packing List showsthat the Subsea Tree Assembly had a “Tubing Hanger Stab
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`Sub — 4-1/16’ 5,000 PSI W.P. with Integral Annulus, D.H.S.V. and Pressure
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`Monitoring Ports.”” Exhibit 1013.
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`Following an inspection of the Subsea Tree Assembly Components, a
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`repair was madeto the Subsea Tree Assembly. Exhibit 1010 is a Repair Letter dated
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`March 11, 1993 from Dril-Quip to Maersk to inform Maersk of the repair to the
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`valve block of Part Number 2-899976 for the Regnar Project. The Repair Letter
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`explains that a repair was madeto plug a mis-located 0.188 Dia. Hole for the pressure
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`monitor line. Exhibit 1010.
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`Followingthesale and repair, Dril Quip’s Subsea Tree Assembly was
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`delivered to the purchaser in 1993 andinstalled thereafter, well before February 5,
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`2019. The delivery and installation ofthis Subsea Tree Assembly was a major event
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`in Dril-Quip history, because it was one of Dril-Quip’s first subsea tree awards.
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`Presently, the Regnar Project well including the Subsea Tree Assembly has produced
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`for over twenty years.
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`Dril-Quip, Exh. 1006, Page 7 of 14
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`The sales and repair records shown in Exhibits 1007-1013 were
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`obtained from Dril-Quip’s sales databases. These databasesare kept in the ordinary
`course of business at Dril-Quip andas a regular practice. Information was entered
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`into the databasenearthetimethatthe sales activity reflected in the documents by—
`or from information transmitted by—someone with knowledge of the information.
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`Keeping these recordsis a regular practice of Dril-Quip.
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`THE DESIGN OF THE SUBSEA TREE ASSEMBLY SOLD JULY 20,
`1992
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`The Subsea Tree Assembly that was built and sold before February 5,
`2019, including the design identified in Exhibits 1007-1013, was built according to
`multiple Computer Aided Design (“CAD”) machine drawings prepared by
`Dril-Quip as part of the sale to Maersk. A description of a sampling of these
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`drawingsis includedin further detail below.
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`Exhibit 1014 is a CAD drawingofPart No. 2-800004, portions of which
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`are reproducedbelow:
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`Dril-Quip, Exh. 1006, Page 8 of 14
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`
`
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`
`Exhibit 1015 isa CAD drawing ofPart No. 2-800007, portions of which
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`are reproduced below:
`
`Dril-Quip, Exh. 1006, Page 9 of 14
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`
`
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`
`SUBSEA COMPOSITE TREE
`
`SECTION "A-A‘
`
`Exhibit 1016 isa CAD drawing ofPart No. 2-899966,portions of which
`are reproduced below:
`
`
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`yo 38? CORLL KATP
`VERTICAL HOLE
`
`
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`
`
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`
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`To NTERSECT win
`ORL-GUP %
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`
`
`
`Exhibit 1018 is a CAD drawing of Part No. 2-899965, reproduced
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`Dril-Quip, Exh. 1006, Page 10 of 14
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`
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`LOW STRESS STAM,
`z
`Onloue
`PIN 2-399965-REV.—
`
`
`
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`
`
`
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`
`Exhibit 1019 is a CAD drawing ofPart No. 4-SD-60077, reproduced
`
`Dril-Quip, Exh. 1006, Page 11 of 14
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`
`
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`
`_ These CAD drawings, among others, were inspected andcertified by
`Det norske Veritas (DnV), an independent global certification body based out of
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`Dril-Quip, Exh. 1006, Page 12 of 14
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`
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`
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`Oslo, Norway. See DNV GL, https://www.dnvgl.com/ (last visited December Li,
`2020). Exhibit 1017 is a report released on April 13, 1993 by DnV verifying that
`the design of the Subsea Tree Assembly including the CAD drawings of Part Nos.
`2-800004, 2-800007, 2899966, and 2-899965 were reviewed and found in
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`compliance with Danish Offshore Regulations before Dril-Quip delivered the
`Subsea Tree Assembly to Maersk. These drawings were drafted by Dril-Quip
`engineers near the time that the Subsea Tree Assembly was designed by Dril-Quip
`at the request of Maersk by someone with knowledge of the information.
`
`The CAD drawings and certifications shown in Exhibits 1014-1019
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`were obtained from Dril-Quip’s sales databases. These databases are kept in the
`ordinary courseof businessat Dril-Quip andas a regularpractice. Information was
`
`entered into the database near the timeofthe sales activity reflected in the documents
`from information transmitted by—someone with knowledge of the
`information.
`
`It is my understandingthatall of these sales and repair records, CAD
`drawings, and certifications were provided to Dr. Brun Hilbert for inspection.
`
`Vv. CONCLUSION
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`All of the statements madein this declaration of my own knowledge
`are true. All statements made based on information and belief are believed to be
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`true. Further, these statements are made with the knowledge that willful false
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`Dril-Quip, Exh. 1006, Page 13 of 14
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`
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`statements and the like so made are punishable by fine or imprisonment, or both,
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`under § 1001 of Title 18 of the United States Code.
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`Executed on January 29" 2021
`
`Brian Christie
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`Dril-Quip, Exh. 1006, Page 14 of 14
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