Kenneth Vogel

Summary

Dr. Kenneth R. Vogel is the founder of Vogel Economics, an economic consulting firm dedicated to independent and detailed analysis of economic, financial and operational issues mainly related to the production of oil, gas and other means of energy production. He has over 35 years of experience in law and economics, especially related to natural resources.  He serves as an expert witness and economist in matters involving the value of resources and damages related to oil and gas production, mining and renewable energy production. He conducts public policy analysis on matters related to energy and mining and assists clients in determining the availability and value of assets related to energy (including crude oil and natural gas production, coal mining and renewable energy projects) as well as non-energy mining.  His broad experience includes both more than ten years of academic teaching and research and more than fifteen years of public service. While at the U.S. Department of the Interior, Minerals Management Service (“MMS”), he was the first chief of the office of enforcement, where he conducted public policy and economic analyses of minerals royalty regulations, conducted alternative dispute resolutions of royalty disputes and assured enforcement of the statutes, regulations and lease terms related to minerals royalties. Dr. Vogel was either principal or contributing author of the vast majority of federal regulations related to the valuation of minerals, including oil, gas, coal and geothermal steam for the 17 years with MMS. He was an author of most of the federal royalty valuation regulations, as well as regulations dealing with offshore oil and gas exploration and development. He drafted energy legislation as well as briefs to the Federal Energy Regulatory Commission. He was chief negotiator for the settlement of federal and Indian royalty disputes, collecting over one billion dollars on behalf of the federal government and tribal and individual Indian mineral owners. In performing these duties he conducted complex analyses of both large and small data sets.  Dr. Vogel was the representative for the MMS on the Department negotiated rulemaking committee that drafted proposed regulations dealing with Indian Self-Determination. He participated in the setting of offshore boundaries with the states of Alabama and Alaska.  

Education

Massachusetts Institute of Technology 1971| S.B. in Urban Studies 

· Internship at Mayor’s Office, Boston 

· Thesis on effect of property tax assessments on housing abandonment   

University of Pennsylvania Law School 1975 | J.D.     

University of Pennsylvania, Fels Center for Government 1977| Ph.D. in Public Policy Analysis 

· Manager of study for National Academy of Sciences, Research Applied to National Needs regarding expenditures for research on urban issues 

· Brookings Economic Policy Fellowship  

· Dissertation on effects of eliminating exclusionary zoning on provision of education, following decision by N.J. Supreme Court in Southern Burlington N.A.A.C.P. v. Tp. Of Burlington    

Experience

Assistant Professor of Economics July 1976June 1982 State University of New York at Buffalo | Department of Economics 

Department Director of Undergraduate Studies 

University Committee on undergraduate education requirements 

Undergraduate Teaching Award 1981 

Adjunct Assistant Professor of Law  July 1979June 1982 State University of New York at Buffalo | Law School 

Associate Professor of Law July 1982June 1989 ; Leonard Cohen Professor in Law and Economics  July 1986-June 1989 Loyola Law School | Los Angeles 

• Organizer of conference on critical legal studies 

• Analysis of Property Rights and Application of Economic Theory to Legal Disputes  

• Research on animal trespass and other property rights regimes  

• Applied economic theory to case involving discrimination on basis of handicap    

Chief, Internal Review Division; Royalty and Management Policy Division July 1988March 1992 Minerals Management Service | Washington, DC 

• Nearly 20 years’ experience devoted to improving federal and Indian royalty regulations. Personally developed framework for the federal and Indian coal and geothermal steam valuation rules developed during the late 1980’s and early 1990’s.  

• Led team that performed economic analysis of effect of coal valuation regulations for Secretary Lujan, in response to questions raised about valuation of Navajo coal at his confirmation hearing  

• Drafted petition for the Department of the Interior to the Federal Energy Regulatory Commission commenting upon Order No. 636 concerning restructuring and its effect on DOI and energy markets.  

• Assisted the Assistant Secretary in the negotiation of boundary disputes with the States of Alabama and Alaska on the outer continental shelf.  

Chief, Office of Enforcement March 1992September 2005 Minerals Management Service | Denver, CO • 

•Lead negotiator and mediator for United States in resolving disputes concerning the proper payment of minerals revenues, collecting over one billion in federal revenues 

• Negotiated and mediated disputes concerning Indian tribes and allottees; given award by Jicarilla Apache Tribe  

• Lead negotiator for U.S. in Kauley v. Lujan and many other disputes with tribes and allottees  • Provided trust oversight by recommending acceptance or rejection of tribal royalty settlements  • Analyzed proposed developments on Indian reservations, with an emphasis on assuring the maintenance of the Indian trust.  

• Enforced civil penalties related to royalties and offshore production of oil and gas  

• Sponsor of MMS team that reviewed the oil and gas royalty payments made to the Jicarilla Apache Tribe  

•Performed due diligence for the United States Department of Treasury in valuing the capital value of the oil concession assets held by Estados Unidos Mexicanos, which were the guarantee for loans and guarantees totaling nearly $50 billion.  

• Helped to design compliance processes for the MMS to assure that oil and gas royalties were properly paid.  

• Chief negotiator for U.S. Department of the Interior in crude oil qui tam litigation involving the 18 of the largest federal oil producers. 

• U.S. ex rel Johnson v. Shell (depositions) Expert Witness for the United States estimating damages owed by two defendants: Shell Oil Co. and Unocal Corp. for alleged undervaluation of oil produced pursuant to federal regulations and leases (1999)    

Managing Director September 2005June 2017 FTI Consulting | Denver, CO and Houston, TX 

Policy Analysis   

• Wrote comments on proposed Indian oil rule and white paper regarding deepwater royalty relief for industry oil and gas association.  

• Wrote policy paper for crude oil producer estimating losses to government if bill was passed that proposed to prevent new OCS leases being issued to producers which did not agree to renegotiate their deepwater leases.  

• Wrote comments on Advanced Notice of Proposed Rulemaking, and draft Environmental Impact Statement for interested party concerning new MMS rules for offshore alternative energy. Developed theoretical framework for revenue system for new energy sources that would allow for efficient development of undeveloped natural resources. Expert Witness   

• Assisted in long-running disputes on behalf of U.S. Department of Justice involving alleged breaches of trust by Indian tribes involving oil and gas royalties (2005-2017) 

• Retained by TransAlta USA Inc. in case brought by royalty owners against coal mining company concerning the value of coal for royalty purposes used in electric plant owned by mine operator’s affiliate (2006)  

• Retained by PPG Industries in a case involving the economics of a gas storage facility and valuation of brine produced from the salt dome in Louisiana. (2007)  

• Retained by government natural gas purchasing contractor concerning standards under the Debt Collection Act. (2007)  

• Retained by Marathon Oil Company regarding class action certification in a case involving royalties on fee lands in Oklahoma. (2009)  

• Retained by Marathon Oil Co. and Noble Energy in case involving the value of natural gas for purposes of paying overriding royalty in western Africa under production sharing agreements. (2010)  

• Retained by U.S. Dept. of Justice to estimate damages for settlement purposes in breach of trust cases brought by Indian Tribes involving the valuation of solid minerals. (2010-2016)  

• Participated in report to International Chamber of Commerce in International Arbitration involving costs of building oil pipeline from Caucasus through Turkey. (2010)  

• Retained by BP America to develop economic analysis concerning deductibility of affiliate transportation or processing costs of capital in calculation of severance taxes under Colorado State Law (2011)  

• Retained by BP Exploration & Production Inc. to develop a regulatory analysis concerning a production platform on the outer continental shelf of the Gulf of Mexico. (2011) 

• Retained by international oil producer in multi-district litigation concerning effects of international oil indices on domestic oil value for royalty purposes (2014)  

• Retained by Rockies Express Pipeline in breach of contract case against the United States Department of the Interior involving transportation of gas through the pipeline (2014) and against private shippers (2016).  

• Retained by SG Interests in antitrust case brought by working interest owner against competing working interest owners and gas gathering system owners. (2014)  

• Retained by hedge fund to analyze economic prospects of a Chinese oil production firm as a potential investment target. (2015)  

• Retained by gas producers in Colorado on matters involving enforcement of federal regulations (2015-16)  

• Retained by Shell Exploration & Production Co. in qui tam involving transportation deductions for oil produced on outer continental shelf leases in the Gulf of Mexico (2015)  

• Retained by Colombian oil producer in arbitration involving crude oil transportation (2016) 

• Participated in report in international arbitration between Russian coal producer and Japanese client (2016) • Retained by gas trader in dispute with pipeline company regarding contract interpretation and valuation (2017)  

Skills

· Economic Analysis 

· Econometrics 

· Negotiation 

· Mediation 

· Legal Analysis, including statutory and contract interpretation 

· Organization Analysis 

· Regulatory Analysis and Interpretation