Free Exhibits - District Court of Colorado - Colorado

Case 1:03-cv-02579-RPM

Document 145

Filed 01/11/2007

Page 1 of 42

Ej7 Engineering
1artners Intcrnahnnal
Consulting Engineering Forensic

Grets
Principal

__________________________

Phone

832

July

21

2006
Bowick

Mr

Robert
at

Attorney

Law Lawson
Drive

Matthews 2000
Suite 700

Al-Azem

PLLC

ElT
for

__________

Houston

Texas

77057

Re

Report Varco
District

L.P vs Pason

US

Corporation

of Colorado

No

EPI

No

060127

1.0

SCOPE OF
have
retained

as an expert

witness

by

firm

Matthews

Lawson
the

Bowick
of Varco

Al-Azem

PLLC

on behalf

Varco
Civil

matter

LP
States

Action

No
to

03-cv-02579-

RPM

In the United

Court

for

the District

Colorado

provide

concerning

claim

patent

infringement and related

issues

connection

with

this

matter

Varco has

Pason

USA
5474142
that

Corporation

Pason Ex

has

infringed

certain

United

States

Patent

Patent

For

purposes

of

my

opinions

have

presumed

the

is

and

enforceable

My USD
per hour not

time

this

mailer

is

at

my

standard

consulting

$285.00

including

for

expenses

Furthermore

no

part

of

my

EPI-Houston

Corporate

Kingwood
or

Drive

or

P.O

Kingwood
358-6135

77339

or

77325

Telephone

281

800

or800

Licensed
Failure Analysis

Consulting Safety

Engineering
Liability

Reconstruction
Personal injury

Computer Autos
insurance

Graphics
Litigation

Compliance

Case 1:03-cv-02579-RPM
Report
Civil

Document 145
in

Filed 01/11/2007
USDC
the
District

Page 2 of 42

Varco

L.P vs

Pason

Systems
Partners

Action

No
Perkin

BNB
P.E
July

By
EPI
File

060127

compensation

depends on the outcome

of

biographical

sketch

my
is

qualifications

is

hereto

as Exhibit

and

of my publications
have

and patents

attached

as Exhibit

reviewed

understand

to be the pertinent

documents

produced

by both Varco

Pason

to

this

matter

thus

relate

to

the technical

factual

issues

to-date

However
to

as additional

may
date

be

produced

to

me

they will

likely

be

reviewed

this

reports

reserve the

to

add

to

and/or

modi my
and/or

present

opinions

and

based

upon

the

evaluation

any

such

information

All

the

and

set

forth

in

expert

report are of

my

own own

personal

and

the

and

set

forth

herein

are

which

were

based

upon
and

my

education

experience

expertise

both

onshore

offshore

oil

gas

drilling

and

operations

If

called

upon

to testify

thereto

could

and would

so

2.0

QUALiFICATIONS
am Chief
with Executive and

one

of

Mechanical

Engineers

Engineering

Partners

International

Inc

EPIs

Offices

are

located

Kingwood
have

Texas near Houston

Bachelor

Engineering

from

California State

at

Long

which

obtained

1973

attended

certain

graduate

level

courses

in

Administration

to

my
and

obtaining

my BSME

degree

course of

my

career

have

attended

courses

Case 1:03-cv-02579-RPM
Report
Civil

Document 145
Corporation

Filed 01/11/2007
USDC
the
of

Page 3 of 42

Varco

vs

Pason

Systems

Colorado

Action

No
Perkin

BNB
P.E
July21 2006
International

By Gregg
EPI

EPr

Incorporated

No
sponsored

lectures

of Texas

at

Austin

School of

Hydraulics

The

American Management

American

of

Mechanical Engineers

ASME and ALGORTM
registered as

am
standing
in

currently

professional

mechanical

in

good

of

Texas

Louisiana

Hawaii

am

presently an

inventor and

of

patents

10

was

employed

the

gas

industry

1968 through

1986 as

industry

employee

In

mid-I

began

my

work

as

independent

mechanical

engineering

consultant

am employed
area of onshore and

as

independent

consulting

mechanical

engineer

offshore domestic

and

oil

gas

drilling

and

production

including

design

use

and

of equipment

systems

used

this

As CEO of EPI and one

of

its

Engineers

have

to

conduct

liability

personal

injury

and

investigations

to

mechanical

equipment

utilized

both

surface

and

downhole

operations

and

processes

associated

oil

gas

well drilling

well

completion

and

production

systems

have

qualified

state

and

courts

located

California

Texas

Colorado

Alaska

Louisiana

and

as

expert

professional

engineer

design

use

application

evaluation

of tools

and

systems

used

in

these

phases

of

oil

gas

well

drilling

am

currently

an

instructor

at

the

University

Texas

Petroleum

Extension

Service

PETEX
oil

and

teach

courses

in

pipeline

pipeline

construction

gas

drilling

production

operations

including

personnel

and equipment

well

and

servicing

operations

Case 1:03-cv-02579-RPM
Varco L.P vs Pason CMI Action No 03-M-2579
Report

Document 145
in

Filed 01/11/2007
the

Page 4 of 42

Systems US Corporation

USDC

for

the

District

BNB
International

By Gregg
EPI Ale

Perkin

P.E
July

No
have

EPI

Incorporated

21

2004

served on

PETEXs
and

Board

11

am

affiliated

following

professional

organizations

American

Petroleum

API
of
Drilling

Society

SPE
Engineers

International

Contractors

IADC
Societies

American

Society

of Mechanical

Engineers

National

Texas

of

NSPE
Society

TSPE

National

Fire

Protection

Association

NFPA
and

Instrument

of

ISA
over

the

American

Society

12

have

twenty

20

years experience

as

expert

witness

provided

expert

testimony

as

professional

mechanical

engineer

relative

to

oil

and gas

well

drilling

and

and

drilling

servicing

well

completion

oil

gas

production

onshore

offshore

safety

systems

coiled

tubing

artificial

lift

valves

thread

and

systems API

and

Premium

connections

tools

and

including

application

and use

Department of Transportation

DOT
power

safety

mechanical

design

including

equipment

systems

onshore

offshore

cranes

rigging

other

heavy

generation

power

transmission

and power

utilization

production

refming

and

process

safety

management

While employed and

as

an

oilfleld

or Floorman

Engineer

in

onshore

3.0

BASIS 13

FOR OPiNiONS
In developing

my

opinions

relative

to

this

matter

reviewed

the

patent

expert

reports

by

documents

deposition

transcripts

Case 1:03-cv-02579-RPM
Varco L.P vs Pason CMI Action No 03-M-2579
Report

Document 145
US
Partners
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Filed 01/11/2007
USDC
the
District

Page 5 of 42

BNB
International

By
EPI
File

Perkin

P.E
July

No

EPr
of upon
in

060127

materials produced

The

sources

forming

my
with

opinions

are

provided

in

Ex
knowledge and

information

together

my

education

training

formed

of

my

opinions

Additionally

on July

to

Ensign

Drilling Rig

near

Denver

Colorado

was

utilizing

Pason AutoDriller

system

At

that

time

was

able to observe

assess

and photograph

Pason equipment being utilized

On

14 2006

attended

of

Mr
witness

Holt

who was

designated

as

Pason

USA
system

Corporations Rule 30

of

the

Pason

AutoDriller

4.0

SUMMARY OF OPINiONS
14
have determined person having
in art

of

Patent would understand

claims

terms

to

be

interpreted

as follows

regulator

device

is

of

to

electrical

mechanical hydraulic or pneumatic

relay

device that

conveys

imparts an

electrical

or pneumatic

to

e.g

control

movement

neutral up or

down

rigs

systems brake

relaying

conveying

or transmitting

e.g

to

pass along

selecting

automatically

Case 1:03-cv-02579-RPM
Report Varco
Civil

Document 145
in

Filed 01/11/2007
of

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L.P vs

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No 03-M-2579
Perkin

BNB
Engineering
International

By Gregg
EPI

P.E
July

Incorporated

No 15

060127

2006
also

determined

that

the

Pason

AutoDrillerTM

apparatus

and

the

methods

utilized

to

operate

it

11 and

14

of the

142

Patent

or alternatively

under

5.0

THE
16

PATENT-IN-SUiT 142

Patent

generally

apparatuses

and

of

regulating

the control of specific

operational factors

the use

of

lengths

of

country

tubular

good

OCTG components

used

to

drill

an

oil

and gas

well

the

such as

drill

DP
drill

bottom

BHA
together

components

and

Bit
form an
individual

are

all

collectively

from the earths

surface

to

string

The

Drill

String

is

one

part

of

Rotary

Drilling

Rig
Rotary
Circulating

System

Rig has

operating

systems

which

Hoisting

and

Power

respectively

The

operational

are

integral

part

of each

one

of these

systems which

either

separately

jointly

or collectively

drilling

fluid

pressure measured

per

inch

the

weight

applied

to

the

WOB
String measured foot-pounds

the turning

torque
which

applied

to

the

91-lbs
revolutions per

speed

at

Drill

String

is

being

rotated

or turned

measured

minute

RPM
in feet

to

achieve

an optimal value

bit

penetration

through

the earth

measured

per hour

Case 1:03-cv-02579-RPM
Report

Document 145
US
Corporation
in

Filed 01/11/2007
the the
District

Page 7 of 42

Varco

CMI
EPI

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By Gregg
File

Partners
July

060127

21 2006

6.0

INTERPRETATiON
17
have

OF THE
that

OF THE
the claim terms

142

or

elements

phrases

or

paragraphs

are

interpreted

or

construed

as

they

would

understood

of

ordinary

skill

in

art

at

the time

the invention

e.g when

patent

was

filed

based

upon

his

or

her

of

claims

descriptions

and/or

specifications

including

history

also

been

that

ordinary

and

customary

meaning

as understood

by

person

of ordinary

in

the

art

should

prevail

there

was

intent

to

deviate

this

meaning

clearly

and

unmistakably

provided

the

the

claim

written

description

and/or

the

file

history

am

informed

person

of

skill

relevant

art

would
familiar

should

invention

would

be

with

the

necessary

and

concepts

required

to

make

device

practice

method

that

was claimed

the

patent

the

it

was

filed

not someone

who would

undertake

to

innovate

or

invent

nor would

considered

an

expert

or intellect

in that

art

18

To

at

determination

of

level

skill

necessary

for

this

person

of ordinary

art

possess

with respect

the

considered

the

person

of ordinary

in

relevant

arts

education

training

experience

know-how
of

and

working

history

particular

field

Furthermore

types

relevant

art

include

solutions

existed

art relative

to

problems

identified

in

other

patents

This

speed

with which

innovations

were made

in

the

art

in

the

and

sophistication

and

the

involved

Case 1:03-cv-02579-RPM
Report
Civil

Document 145
in

Filed 01/11/2007
of

Page 8 of 42

Varco

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BNB
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By
EPI
File

P.E
July

Incorporated

No 19

21
presented

Based upon the

my
Patent

opinion

person

of

ordinary

skill

the

relevant

art

with

respect

the

142

would possess

certain

specialized technical

skills

would

competent technical

familiarity

the

onshore

and

gas

exploration

some

relevant

personal

experience

with

electro-mechanical

control systems

20 142

been

that

Varco had

11

and

of

the

Patent as being

infringed

upon by Pason

have

these particular

in

142

Patent

been

to

provide

my

opinions

as to

how

certain

words

and

phrases

used

in

of

142

Patent

would

person

of

ordinary

skill

the relevant art

It

is

my understanding

that

the

meaning

the following

claim terms

are

disputed

regulator

relay

relaying and

selecting

21
preferred

It

my

opinion

that

the

were not

limited

to

the

embodiment

of

pneumatically

In

this

Pason

concluded

the

same

For

Pason

represented

to

the

Patent

Trademark

USPTO
embodiment
the description

should

not

be

limited

to

the

See Pasons

Reexamination

Request

Bowden Bowden

is

not drawn

to

the

apparatus

disclosed

in

recited

terms

that

encompass

variety

of other

embodiments

apparatus

including

electrical

implementations

Case 1:03-cv-02579-RPM
Report
Civil

Document 145
in

Filed 01/11/2007
USDC
for

Page 9 of 42

Varco

L.P vs

Pason

Systems
Partners

the

the

District

Action

No 03-M-2579
Perkin

BNB
Engineering
International

By Gregg
EPI

P.E

Incorporated

No

060127

2006

disclosed

in the

art

teachings

of Varney

The

of

11

of Bowden

is

not

drawn

to

method

steps

performed

using

specific

apparatus

disclosed

in

the

Bowden

but rather

recites

the steps

of

terms

that

may

be

practiced

variety

of other apparatus

embodiments

such

as

the

electrical

fluid

pressure

implementations

disclosed

in

art

teachings

22
of the
District

Further

the

Appeals

Federal

stated

in

Courts denial

Varcos

for

Ex
the

that

the

claims

of the

142

Patent

were

not

limited

to

pneumatic

control

or

methods

the preferred

as follows

...nothing
the

in

the claim language operated

or

suggests
the

use

of pneumatically

performing

relaying

step
discussion record

The
the

only

of pneumatically
from valves the

operated

in

intrinsic

comes

specification
are

In

preferred valves that operate
as

236-239

pneumatic

relays
do not
limit the

This
invention valves as

and

corresponding
to the

whole

use

of pneumatically
such valves
as

operated but

rather

merely operable

one

example

the present

invention

Moreover
operate broader operated as

the

disclosure
implicitly

of
relay

that

relays

suggests the

that

than

preferred

pneumatically

valves

As
other
structures

the

contemplates
as

that to the

may

operate

relays

addition

preferred
intrinsic

pneumatically record does

operated not
the district

courts

interpretation

of the

step

Case 1:03-cv-02579-RPM
Report

Document 145
in

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the

Page 10 of 42
Colorado

Varco

L.P vs

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Action

No
Perkin

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July International

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File

Incorporated

No 23

060127

2006

Furthermore

Pasons

technical

expert

Mr
to

Ford

Brett

testified

Ex
control

that

claims

of

the

142

was

not

limited

pneumatically

operated

systems

as

follows

Court
are

Its to

not

your

opinion

is

that

claims

11

and

14

limited

pneumatic

control system --

Expert

Well--no

Its

not

limited

to

pneumatic

control system as the

way

theyre

24

Finally

own

counsel

during

appeal

of the 142 Patent was not

limited

to

pneumatically

operated

control systems

as follows

Pasons
claim 14

Counsel
should

Ms
not be

La

conceded
to

that

pneumatically

operated

valves

25
not be
limited

For these reasons

it

my

opinion

claims

of

Patent

should

to

the

pneumatic

control

system

of

preferred

disclosed

within

the

142

Patents

specification

6.1

Regulator
The
term

26

regulator

as

used

in

the

drilling

pressure

regulator..

bit

regulator..

of apparatus

Claims

and

is

generally

understood

person

of ordinary

relevant

art

as referring

to

device

that

capable

detecting

and

to

electrical

mechanical

or

pneumatic

signal

27
McGraw-I-Jill

consistent

with

ordinary meaning

as

provided

by

Dictionary

of

and

Terms

6Ih

Ed 2003

defmes regulator

as

follows

10

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Civil

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No
regulator

rEP
quantity at or varies according
to

device predetermined predetermined plan

28
of the 142

Even

to

the

of

Patent

to

cover

devices

produces

an

electrical

signal

that

changes

pressure

including

devices

as

pressure

transducer

coupled

to

potentiometer

See

Pasons

Reexamination

Request

Ex

EElements

124

and

of

produce

an

electrical

with

drilling

pressure.t

concurred

the

claimed

regulator

as

device

measures

changes

in

drilling

pressure

and

outputs

signal

including

devices

such

as

potentiometer

Ex
Pasons
patent

29
opinions

Mr
2002
See

Leier

prepared

at

least

two

on February

October

whereby

he

defined

regulator

4-5 respectively

You
the

computer 28 which
transducer pressure signaling an

to

pressure

computer produced

measures

changes

pressure transducer

and produces

intermediate result
in

which

is

pressure
structure

signaling
drilling the

Thus
pressure

appear regulator

that

of

fluid

called carried

claim out in

patent is

on

your

apparatus

30

Moreover

general

manager

testified

this

construction

of

regulator

is

proper See

Feb
of the

Affidavit

Rodda

The
is

pressure

drilling

mud

supplied

to

the

drill

string to

pressure

transducer
the drilling

and parameters

the

control

computer as

of

The

11

Case 1:03-cv-02579-RPM
Report
Civil

Document 145
in

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the

Page 12 of 42
Colorado

Varco

Action

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of

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P.E

Engineering

No

060127

2006 monitors
drilling

computer
supplied transducer braking signaling permit weight the

various pressure
this

parameters received
control

including from the

the

mud
uses

pressure

and

data to

of the
processor stepper produces

mechanism
to control
bit

The
the
to

computer

advance

the

drill

the

of the

string

31

Additionally

during

the

prosecution

the

considered

prior

art

references

that

taught

regulators

which

included

coupled

to

computer controls and

of

regulators

taught

the

art See

Ex
control system

March

1994

Office

Rogers
computer

discloses

drilling

optimization

Figs

which comprises

control

system

for

optimizing

the penetration

rate

In

which

RPM
computer
to

and

thrust

or

weight

are

monitored

and

achieve

the

optimal

penetration

conditions

Col
the i.e Ball

art

made

record

by

USPTO
et

during

the prosecution

Rogers

Alder

Gray
that

Jr

al Tanaka

et

al

and

et

al

Ex
for

each

regulators

are

electronic

in

and included

transducers

parameters

coupled

to

computer processors

for

generating

signals

response

to

changes

parameter

being

measured

Nowhere

prosecution

did the applicant for

142

distinguish

his

from

the

art

of

upon the

structure

of

the

regulator

or the

fbnction that

uniquely

For these reasons

the

of

and

were not

limited

to

valve-type

regulators

as

disclosed

in

preferred

embodiment

of the 142 Patent

12

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EPI
File

P.E

International

No
6.2

Relay
term

32

relay
and

as used

phrases

...a relay coupled

first

relay

second

relay

of Claims

and

is

generally

understood

person

of

skill

art

as

referring

to

device

that

conveys

or

imparts

an

electrical

mechanical

or

pneumatic

signal

e.g

to

control

movement neutral up
interpretation
is

down

of the rigs

systems

ordinary

provided

by

numerous

dictionary

at

Ex

which

relay as follows

relay
activating

that

responds

to

small

current an

or

voltage

change

switches

or other devices

electronic

33

The

specification

of

the

142

Ex

describes

operation

relay

the

as

follows

Each
responsive
string to

regulators
that

attaches

to signal

relay to

which

is

regulators output
to
drill

supply

drill

signal

142

Patent

Col

15-18

As

shown

FIG
pressure receive pressure
driller

33 regulator the sensor
further

comprises weight

drilling

200
bit

regulator.
drilling

developed

by

34

sensor

35. .Automatic which
unit

33

motor 204
Differential to raise

gear cable handle
via

unit

gear

brake braking

207

thereby

adjusting

32 applies against
valves
to
air

26

Regulators
to

200-203 connect
pneumatic

output

motor 204 which drives thus the
regulators
release

motor 28
be used

204

to

control

brake

of

from drum
concurrently

26
to control

may may
also control

brake combination
to

utilized

individually or in any cable

the

of

from drum 26

13

Case 1:03-cv-02579-RPM
Report

Document 145
in

Filed 01/11/2007
for

Page 14 of 42

Varco

L.P vs Pawn

Systems US
Partners

the

District of

CMI By
EPI

Action

No
Perkin
International

EPI

No

In

preferred embodiment operate
as relays

valves 236-239 are pneumatic
to

valves

supply

compressed
connect
in

to

air

motor 204
to air deliver

valves

series to

from an

air
air

shown
delivers

motor

204
to

That valve 231
the

the

compressed
Air pressure valve operator

flow

regulator

212
to

pressure supplied automatic
to limit

driller

Flow

212 functions
to air

pressure
will

of the
cable the formation
rate

motor 204
therefore could

drive

regulator

determines
into

which
Patent

drill

penetrate

87

Col

The
drill

drill

controller

attaches

to

the or

to

receive

from
drilling to

regulator

regulators

controlling
relay

when
drilling fluid control

the

pressure pressure operates

regulator signal the
drill

receives supplies
string

decrease

to

effect

an

increase an

in

rate

of

of

the results

Conversely
the the

increase
drill

drilling control to effect

pressure
signal

that in

operates
rate

decrease

of

drill

If receives
string to

relay

to

the

bit

regulator
it

decrease
signal that in

signal operates the
rate
drill

supplies

drill

control an

controller the
drill

effect

increase

of
weight
that

of

string

Conversely
supplying
string

an

increase string to effect

in

the

operates the
rate

controller

decrease

in
Il

of

of

the

142

34

the

142

written

description

described

relay
number

and

purposeful

in

nature

That

can

be

an

infinite

sequential

communicated

to

the

actuating

would be

sent

the

drill

controller

discussed

14

Case 1:03-cv-02579-RPM
Report
Civil

Document 145
Corporation

Filed 01/11/2007
the
District

Page 15 of 42
Colorado

Varco

L.P vs

Pason

Systems

Action

No 03-M-2579
Perkin

By Gregg
EPI
File

P.E
July

Partners

International

EPI
the

060127

35

Pason

is

attempting

to limit

term relaying

to

an

overly

narrow

specific

device

that

is

comparable

to

an

electrical

off
that

or

on

Pasons position

based

on

truly

the

are

operable

only as

on
set

or

off

switches

36

As

above

the

Patent

discloses

as

relays

These valves

are

identified

as

items

in

of

the

Patent

Pasons expert affirmed

that

were the

relied

upon

that

basis

of Defendants position

Ms

Okay
think

where

are

the

142 Patent
described the

236

238

are

as relays

relays

Ex
act

Pasons proposed

required

through

must

as

switch

that

on
the

or

off
relays

very narrow interpretation

contradicts the

structure

as

well

as

of

disclosed

embodiment

the

142

Patent

37

Additionally

the

142

Patent

disclosed

that

these

valves

236

through

239

the

embodiment

vary

and/or

with

measured

operating

parameter

vary the

such

as

the

of

air

upon

changes

in

operating

parameter

This

142

Patent

Ex

at

Column

Lines

42

to

44

as

follows

Nozzle 216
amounts of

mounts

on

plate air

to

deliver to

compressed

diaphragm 240 of valve
in drilling fluid

response

to

changes

pressure 57

And

at

Column

Lines

52

to

15

Case 1:03-cv-02579-RPM
Report
Civil

Document 145
US
Partners
in

Filed 01/11/2007
USDC
for of

Page 16 of 42

Varco
Perkin

vs

Pawn

Colorado

Action

BNB
Engineering
International

By Gregg
EPI

EPI

Incorporated

No

060127

2006

In
to

normal
2113 in

Bourdon
response
to

manipulates
fluid air

flapper vary

changes

pressure to

the amoi.mt of compressed

valve
alters

That
the valve

amount 236

of

air

and
air

with which

compressed

motor

204
the

38
were

relays

236
Pason
improperly

disclosed

142

Patent

not

merely

switches

as

as

variably

controlled

e.g

choke

For

an

adjustable

common

flow

device

that

can

vary
result

such

as

flowing

gas

and/or

liquid to

pass

through

it

as

changes

drilling

parameter

Thus

relay

through

239

were

not

limited

to

simple

on and off switches

included

an

almost

infinite

variation

of openings

and/or

flow-through

which

the amount

of compressed

signal

passed

39 142

reasons

the

relays

in

embodiment

of

Patent

or

along

e.g
consistent

pneumatic

or

compressed

signals

to

the

controller

with

Varcos

proposed

construction

40
Patent

Furthermore

during

reexamination

of

Patent the

States

and

PTO
responsive
to

concluded

that

the

of claims

and

included

devices

the

output

of

pressure

transducer

including

such

devices

as an

electrical

signal

Ex
output

Varney

disclosed

128

relay

to

the

signal

of

the

pressure transducer.

16

Case 1:03-cv-02579-RPM
Report

Document 145
in

Filed 01/11/2007
USDC
the
District

Page 17 of 42

Varco

L.P vs

Pason

CMI

Action

No
Perkin

BNB
Engineering
International

By Gregg
EPI

No 41

EPI
of

060127

July21

Even

Pason has represented

to

the

of

142

Patent

in

way

See

Reexamination Request

Ex

which

provided

as follows

The

signal

by
125 128 and

elements pass

124

transducer discriminator
signal

though
132

power

transformer

produce
brake

controls as described
in

operation

134

Varney

at

column

25
42
Furthermore Pasons
patent attorney

Mr

Leier

at

least

two

opinions

on February

2000

October

29 Ex

respectively

whereby

defined

relay

consistent with

interpretation

See

4-5 respectively

Next
fluid

relay

to to at

the

drilling to

pressure

regulator

responsive

the an

output output

signal

supply

control

thereof relay

Again
thrther

your

configuration

does

not

disclose

apparatus

or element processes
the

However
the output

computer 28

presumably which

representative transducer 18
to

changes
effect

pressure
signal

obtained supplied

an
to

from
element system but

computer

28

stepper not physically
in

16

Thus
in

this

again

present

your

apparatus

provides equivalent

software
to

your which
pressure

fbnctionally regulator

the the

drilling

43
is

Moreover

manager

testified

construction

of

relay

proper

See

Ex

Feb 27

Affidavit

Robert

provides

as

follows

This
drilling

product

pressure
drill

of

mud
transducer
drilling

to

the

string

pressure

and parameters including

to

the

computer as computer monitors
drilling

one of the
various

The
the

parameters

supplied

17

Case 1:03-cv-02579-RPM
Report
Civil

Document 145
Corporation
in

Filed 01/11/2007
USDC
for

Page 18 of 42

Varco

No No

L.P vs Pawn 03-M-2579

Systems

the

of

BNB
International

By
EPI

Perkin

P.E
July

Engineering

060127

2006 received
to control

pressure
this

from the

pressure

transducer braking
to

and uses

release

The

computer processor
stepper
into

produces
to

control
drill

rotation

permit the weight

bit

to

advance string

bore

44
considered

Additionally

the

of

the

Ff0
included transducers

prior

art

references

taught

electrical

computer controls

e.g conditioners

amplifiers

and/or

comparators

and

and

such

regulators taught

by the

prior

art

See

History

Ex

March

1994

which

as follows

Rogers
Figs 1-3 which
the

drilling

optimization

system system
drilling for

comprises

computer
rate

control

optimizing and manipulated penetration

penetration

In which
are

rpm

thrust

weight
the

monitored
the

by

computer

achieve

Col
prior art

lines

45
prosecution

Furthermore

made

of record

the

of

142

Patent

i.e

Ball

Rogers

Alder

et

al Tanaka
in

et

al

Jasinski

and

et

al

each

disclosed

that

were

electronic

which

included

transducers

for

measuring

parameters

coupled

to

signal

discriminators

e.g

conditions

and/or

comparators

for

passing

along

or transmitting

to

the

controller

Nowhere

the prosecution

did the applicant

for

Patent distinguish

his

invention

the prior

art

of record

based

upon the

structure

of

relay

or the thnction

it

For these

reasons

the relays

and

are

not

limited

to

only

valve

or

binary-type

relaying

18

Case 1:03-cv-02579-RPM
Report Varco L.P vs

Document 145
US
in

Filed 01/11/2007
the

Page 19 of 42

Pawn
Engineering

Colorado

CMI
EPI

Action

No
Perkin
International

By Gregg
File

TMEPID

Incorporated

No

060127

July

63
46
claim term relaying
as

used

relaying

signal..

and

said

selected

Claims

14

are

generally understood

person

of ordinary

relevant art

mean

conveying

or transmitting

e.g

to

pass

on

This

interpretation

is

supported

same

set

forth

in

and per the various

provided

in

Ex
that

47
and
the

Even

Pawn

has

represented

to

the

PTO

the relaying

step of claims

11

Patent should

be

interpreted

in this

way

See

Pasons

Reexamination

Request

Ex

The
pass

signal

produced

by

elements

and

throu2h

signal

and

power

transformer

which control

operation

of

drill

as

described

at

column

10

lines

through

25
and transformer 132

output

of

movable

contact

124

to

signal

discriminator

128

operate

to

control

string

6.4

48
Claim 14

The

term

selecting

as

used

in

phrase

selecting

any one..

is

generally

by

person

of

skill

art

as

referring

to

as

automatically

choosing

49
Federal

its

February

Opinion

Ex

the

Court

of

for

CAFC
as

the

claim

language

expresses that

the selecting

step

is

step performed

follows

The
performed suggests
that

recites

method
drilling

steps This

are

to

be

automatically the
selecting

rig

step

is

not

limited

to

manual

19

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Report
Civil

Document 145
in

Filed 01/11/2007
of

Page 20 of 42

Varco

Action

L.P vs Pawn 03-M-2579
Perkin

Systems

By Gregg
EPI

P.E

International

No

060127 operation valve
selectors

manual

of

regulators as construed

the

Hence
preamble of

the

language not support

14 the district

particularly courts construction

step
not operation

CAFC
limit

the manual
calibration

step

the

of

valve

or

the

manual

of

In

effect

the
step

court
into

erred

reading

setup or calibration

the

claimed

Notably
resolution
rig drilling

also

conflict

process

automatically setup or calibration

by the

drilling

once

the

up and

running
did not understand
conflicts

because systems primary
applicant
part

drilling

method

resolving controls

between
response operator

the the as

In
that

explained
initial

to

the

Examiner

of the

setup procedure

With
calibration the the system

in

setup automatically

or

then

between
operation
selecting

and

secondary

during confirms

Thus
in

claim
the

14

does

not

encompass the
but

initial

setup

or

calibrate

system between

conflict

resolution

process

secondary

controls

during

In sum
requires district history

claim

14

not

that

the

selecting

step

two-part court

manual

process
specification

interpreted

Moreover
the

and prosecution
process
relied

two-part
is

manual

upon

by

the

court

from

claimed

selecting

step

20

Case 1:03-cv-02579-RPM
Varco L.P vs CMI Action No
Report

Document 145
Corporation
in

Filed 01/11/2007
the

Page 21 of 42
Colorado

Pawn

USDC

the

BNB
Partners Incorporated

By Gregg
EPI Ale

Perkin

No 50

060127

21
the

CAFC

the

step

to

mean

the

automatic

selection

accomplished

by the

driller

any

calibration

or set

up procedures

had been

accomplished

51
of

based

upon

my review
and

the

and

the

set

out

above

intrinsic

claim construction

of

11

and

14

is

my

opinion

that

the

construction

consistent

the

ordinary meaning

of the

terms

as

provided

It

is

my
not

opinion

that

the

scope

of

Claims

11

and 14

of

the

142

Patent

were

narrowed

prosecution

to

overcome

any

prior

art

and

thus these claims

are

entitled

to

their

range

of equivalents

6.5

Typographical

Errors With Claim

52

last

apparatus

Claim

of

142

has two

obvious

typographical

errors

These

errors

identified

as

follows

drill

string

controller

to

said

and second

relays

wherein

when

said

first

signal

represents

decrease

drilling

pressure

said

drill

string

controller

increases

the

rate of

of

drill

struc

and

drill

string

signal

represents

an

increase

drilling

fluid

pressure

and

said

first

string

represents

an

increase

in

drilling

fluid

pressure

said

increases

the

rate of release

of said

string and

further

wherein

21

Case 1:03-cv-02579-RPM
Report
Civil

Document 145

Filed 01/11/2007
USDC
District

Page 22 of 42

Varco

vs

Pason

Systems

Colorado

No
Perkin

BNB
P.E
Engineering Incorporated

By Gregg
EPI

No when
represents

decrease

bit

weight

string

controller

decreases

the

rate of release

of

said

drill

string

represents

an

increase

in

bit

weight

string

the

rate

of

release

of

said

drill

53

are

obvious

errors

because

it

inconsistent

with

the

disclosure of the

142 Patent

as well

as

how

person

of ordinary

art

would

understand

this

requires the

same

action

increase or decrease of

rate

of

release

in

response

to

both an

increase and

in

the pressure

of

bit

The

language

of

Patent

is

substantially

identical

as Claim

and

of

the

relevant

is

provided

as

follows

to

clarify

the error

Claim
drill

Claim
to said
drill

string

controller

coupled

to

said

relay

wherein

second

wherein

when

said

pressure

results

supplying

first

drill

signal

represents

drill

control

signal

operates

said

decrease

in drilling

fluid

pressure

said

drill

drill

controller

to

effect

an

increase

string

controller

increases

the

rate

of

in

the rate of release

of

drill

string

release

of said drill

and when

said

an

increase

in

drilling

pressure results

first

drill

control

signal

represents

an

in

relay

increase

in

drilling

pressure

said

signal

that

operates

said

drill

controller

increases

the

rate

of

22

Case 1:03-cv-02579-RPM
Report
Civil

Document 145
the

Filed 01/11/2007
District of

Page 23 of 42

Varco

vs

Pason

Colorado

No
Perkin

BNB
Incorporated

By
EPI

No
to effect

controller

decrease

in

the

rate

release

of said drill

string

of

of said drill strin2

Claim
wherein decrease
in
bit

Claim
weight and
further

wherein

when

said

said

string

control

signal

represents

decrease

signal

operates

said

in

bit

said

string

controller

to

effect

an

increase

rate

of

decreases

the

rate of release

of

drill

release

of

said

drill

an

increase

string

and

said

second

string

in

bit

results

relay

control

represents

an

increase

in

drill

string

signal

operates

weight

said

drill

string

said

string

to

effect

decreases

the

rate of release

of

said

decrease

in

the

rate of release

of

string

string

54

above

the

wording

Claim

states

that

drill

string

rate

of

release

of

the

string

response

to

either

an

increase

or decrease

in

pressure

and

that

the

drill

controller

the rate

of

release

of the

drill

response

to

either

an

increase

or decrease

in

on bit

This

contrary to

the teachings

of

the

claims

and

specification

Specifically

the

relevant

Claims

and

the specification

as

follows

Illustratively

when

the

connected

to

the

drilling

fluid

pressure

regulator receives

in drilling

fluid

pressure

signal

supplies

drill

string

control signal

that

23

Case 1:03-cv-02579-RPM
Report
Civil

Document 145

Filed 01/11/2007
USDC
for

Page 24 of 42

Varco

L.P vs Pason
Perkin

Systems US
Partners

in

the

of

No 03-M-2579 P.E
July Engineering Incorporated
File

By
EP1

No

2006 the increase

operates

string

controller

to

effect

an

in

the

rate

of

release

of the

Conversely

an

increase

in

fluid

pressure

results

supplying

string

operates the

drill

string

controller

to

effect

decrease

rate

of

the

string

I1

however

the relay

connected

to

the

regulator

receives

decrease

in

supplies

string

control

that

operates the

string

to

effect

an

increase

in

rate

of

of

string

Conversely

an

increase

in

results

relay

supplying

drill

string

control

operates the

drill

string

controller

to

effect

decrease

in

rate

of

the

142
of

Patent

Col

11

25-35
that

55

person

skill

in

art

understands

an

increase

in

drilling

fluid

pressure

especially

when

using

motor

indicates

an increase

in

weight

on bit and

decrease

in

and torque

This

in

fluid

pressure

would

indicate

to

person

of

skill

art that

rate

of

release

should

be

decrease

if

not

stopped

to

prevent

the

bit

from

or

other

damage
bit

Conversely

if

the

pressure

decreases

this

indicates

the

drill

bottom and/or

the

on

bit

has

the

rate

of

of the

drill

string

should

be

to

advance

bit

to

get

it

back

on bottom

Similarly

this

same

person

of

the art understands

an

increase

weight

causes

24

Case 1:03-cv-02579-RPM
Report

Document 145
in

Filed 01/11/2007
for

Page 25 of 42
Colorado

Varco

CMI By
EPI

Action

L.P vs Pawn 03-M-2579
Perkin

Systems US
Partners

the

District

P.E
July

Engineering

International

Incorporated

File

No
in

decrease

speed

torque

This

in

weight

above

would

to

person

of

skill

the

art that

the rate

of

of

string

should

be

decrease

if

not stopped

to

prevent

the

from

stalling

or other

Conversely

if

below

desired

for

this

indicates

that

is

off bottom and

rate

of

of

should

be

to advance

the

to

get

it

back on bottom

56

For these reasons

person

of

in

the art would

error

with

and

easily

interpret

the

as

follows

drill

coupled

to

said

first

and second

relays

wherein

when

said

first

control

represents

decrease

in

pressure

said

string

increases

the

rate of release

of said drill

strina

and

drill

string

control

signal

represents

an

increase

in

pressure

said

string

decreases

increaw@

the

rate of

of

said

strinQ

said

drill

represents

decrease

in

weight

drill

string

increases

dccrca3c3

rate

of

of said

and

when

drill

represents

an

increase

in

weight

drill

controller

decreases

the

rate

of

release

of

said

drill

25

Case 1:03-cv-02579-RPM
Report

Document 145
in

Filed 01/11/2007
USDC rEPID
for of

Page 26 of 42

Varco

CMI
EPI

Action

L.P vs Pason 03-M-2579
Perkin
July

BNB
International

By Gregg

Engineering

No

7.0

INFRINGEMENT
57
which the
that the

determination

infringement

two-

step

process

in

language

of

against

or

method

accused

of

the

accused

construed

court

and

matter

of law

accused

or method

is

to

the properly

claim

Infringement

is

not

found

comparing

accused

to

preferred

embodiment

described

or with

commercialized

of

patentee

but

by

to

one

of

of

patent

as properly

construed

have

informed

that

an

apparatus

such

as

the Pason AutoDriller

or

method

operating

the

same

infringes

patent

claim

is

configured

or operated

to

read upon one

claims

of

patent

even

if the

device

can

be

or operated

ways
that

58

patent

claims

can

be

in

two

ways

literally

or

under

the

of

is

when

and every

element

of

at

least

one

of

the

claims

as

properly

literally

found

the

59
where

been

informed

that

under

doctrine

of

is

an

accused

not

literally

patent

claim

contains

only

differences

from

invention

This

doctrine

infringement

to

be

an accused

not exactly contain

of

claim but

substantially

same

function

in substantially

same

to

achieve

substantially

the

same

result

as

the

invention

While

literal

requires each

claim

to

be

present

in

accused

device

infringement

26

Case 1:03-cv-02579-RPM
Varco L.P vs Pason CMI Action No 03-M-2579
Report

Document 145
US
in

Filed 01/11/2007
for

Page 27 of 42
Colorado

the

By Gregg
EPI

Perkin

P.E
July

Engineering

International

Incorporated

No

060127

under

the doctrine

equivalents

can

be

when

every

claim

literally

missing

is

equivalently

present

have

been informed

that

under

the

doctrine

equivalents

there

is

of

acquired

infringement

may be
is

found

where

an

accused

not

literally

result

new

or improved

technology

that

same

function

substantially

the same

way
in

to

achieve

substantially

same

result

This

was

articulated

by

Federal

Circuit

in

case

Ex

7.1

Burden

of

60

have

been

informed

that

proof

patent

infringement

is

that

accused

be

more

likely

to

infringe

not

infringe

the

patent

have

further

been

that

means

that

infringement

proven

long

as the evidence

sufficient

to

support

finding

by

slightly

over

fifty

percent

50% versus
The

finding

of

7.2

of

61

It

my

understanding

that

Pason does not

sell

AutoDriller

system

but

rents

or

leases

on

per

day

The

Pason AutoDriller

at

least

following

components

27

Case 1:03-cv-02579-RPM
Report Varco
Civil

Document 145
in

Filed 01/11/2007
the

Page 28 of 42
Colorado

Action

vs Pawn 03-M-2579
Perkin
July

Systems US Corporation
Partners

USDC

for

the

District

of

BNB
International

By Gregg
EPI
File

CEPID

21

7.2.1

Box
Control

AutoDritler

Box

28

Case 1:03-cv-02579-RPM
Report
Civil

Document 145
in

Filed 01/11/2007
of

Page 29 of 42

Varco

L.P vs

Pawn
Partners

Action

No
Perkin
International

By
EPI Ale

EPID

No

060127

July

7.2.2

Stepper-type the

motor
brake

including

for attaching

to

Stepper

Stepper Motor

Cable

Drawworks
Brake Handle

29

Case 1:03-cv-02579-RPM
Report Varco
Civil

Document 145
in

Filed 01/11/2007
USDC
the
District of

Page 30 of 42

Action

L.P vs Pawn 03-M-2579
Perkin

Systems US Corporation
Partners

BNB
International

By Gregg
EPI

P.E
July

No
7.2.3

2006

drum encoder

Rotary

Encoder

7.2.4

On/Off

switches

30

Case 1:03-cv-02579-RPM
Report
Civil

Document 145
in

Filed 01/11/2007
for

Page 31 of 42
Colorado

Varco

vs

Pawn Systems
Engineering

Action

No
Perkin
International

By Gregg
EPI
File

rEPr

No.060127

July21 2006 user interface Electronic Either

7.2.5

Pason SideKick

Recorder

EDR

computer

Case 1:03-cv-02579-RPM
Report
Civil

Document 145
in

Filed 01/11/2007
the the

Page 32 of 42
Colorado

Varco
Perkin

vs

Pason

Systems US Corporation
Partners

Action

No 03-M-2579 P.E

BNB
International

By Gregg
EPI

Incorporated

No

July21 2006
7.2.6

Pressure

Hookload

Pason

Box

EDR

Box

Signal

1.2

AutoDriller

Connection
different

In this

diagram the

AutoDriher components

are displayed

_EDR
rMr A4tCWdt

Autoflriller

Control

ii
SideKick

Encoder

EDR

Box

Figure

AutoDrilier

nnection diagram

Con nec4

Ex.QR

32

Case 1:03-cv-02579-RPM
Report
Civil

Document 145
US
Partners the

Filed 01/11/2007
of

Page 33 of 42

L.P vs
Perkin

Pason

Action

BNB
Engineering
International

By
EPI

Incorporated

No
7.2.7

21 2006
drilling

Fluid

Sensor

Transducer

Rigs Systems
Standpipe Pressure Cable

Pressure

Standpipe Pressure

Gauge

33

Case 1:03-cv-02579-RPM
Report
Civil

Document 145
in

Filed 01/11/2007
the
of

Page 34 of 42

Varco

L.P vs

Pason

Action

No 03-M-2579
Perkin

BNB
Engineering
International

By Gregg
EPI
File

P.E

No

EPr

Incorporated

060127
7.2.8

An

electronic

hook-load

and

Rigs Systems

Dead

Electronic

Hook-Load

Beam

34

Case 1:03-cv-02579-RPM
Report

Document 145
in

Filed 01/11/2007
the

Page 35 of 42

LP
No
Perkin

vs Pawn

Systems

USDC

District

of

CMI By
EPI

BNB
EPfl
2006 7.2.9 for the
Incorporated

No

necessary

mentioned

components

and

power

son

Various Cables

35

Case 1:03-cv-02579-RPM
Report
Civil

Document 145
the

Filed 01/11/2007
USDC
the
District of

Page 36 of 42
Colorado

Varco

No
Ale

vs Pason 03-M-2579

Systems
Partners

By
EPI

Perkin

P.E
2006
is

EPI
the

Incorporated

060127

62

It

my

understanding

that

Pason AutoDriller

cannot

independently

measure hook-load

WOB
Pason

or drilling

pressure

without

input

Pason

EDR
for

system

because

the

does

not

include

or

sensors

measuring

these

parameters

Ex

The

Pason

AutoDriller

ties into

the

Pason

system

for

feedback

Weight

on Bit

Pressure

ROP

or

rate

of penetration

depth and

63
modes
to control

also

that

Pasons

AutoDriller

can

operate

in

one of

rate

of

release

Drill

by the Rigs Hoisting

as

follows

WOB WOB
Differential

Rate

of

Limiting

ROP

Limiting

Pressure

zIP

Limiting

zIP

jflj

ROP
and

Both

ROP ROP
Limiting

Limiting

WOB NOTE
It is

and

.ifli

zIP or differential with

pressure

is

difference

pressure

between
drilling

the pressure

drilling that

on bottom during Pason
not have
to utilized zIP

my

understanding so that

by

out

the off bottom

pressure

does

do

every time pressure

changes

64
Patent

It

is

my

opinion

infringe

11

of the

Modes
since Pasons

and

of

142

as set

forth

Further

AutoDriller

of

steps

of Claims

11

14

AutoDriler

those claims

even though

may

be

operated

in

non-infringing

manner e.g Modes

36

Case 1:03-cv-02579-RPM
Report Varco
Civil

Document 145
in

Filed 01/11/2007
LJSDC
the

Page 37 of 42

Action

No

vs Pason 03-M-2579

Systems US
Partners

BNB
International

By
EPI

Perkin

P.E
July

Engineering

No

2006

7.3

Literal Infringement

65

have been

that

when
found

every

element

at

least

one

of the patents

claims

as

construed

is

in

the accused

device

It

is

my

opinion

that

11

of the

Patent

are

literally

infringed

Pasons

System

as

set

forth

my
AutoDriller

understanding

that

Pason

basis

non-infringement

not include

relays

or

regulators

7.3.1

of

the

Patent

System

Preamble
automatically
drilling rig

An

automatic

system for
the drill

drilling

borehole

comprising

66
Claim

is

not

any

dispute

with

any of

language

of the

of

Additionally

there

no question

Pasons

AutoDriller

is

automatic

drilling

system

for

automatically

regulating

the

of

string

of

during

the

of

borehole

For

Pason has

as

follows

The

Pason

AutoDriller system
that controls

yet easy

to

operate

automatic

WOB
AutoDriller

upon weight of

on

bit

pressure

and

rate

ROP

Pason

User

Ex
to

The
string

Pason system controls the mechanism
processor supplied

operating the

drill

means of The
drilling

stepper monitors received

under

of
parameters

computer
including

computer

mud

pressure

from

the

pressure

37

Case 1:03-cv-02579-RPM
Report

Document 145
US
in

Filed 01/11/2007
the

Page 38 of 42

Varco

CMI

Action

L.P vs Pason 03-M-2579
Perkin

USDC

the

District

of

NB
Partners
International

By
EPI Ale

P.E
July

No
transducer

21
uses
this

and

data

to

control

the

release

of
to

mechanism
rotation

computer processor of the stepper motor permit
the

The

produces
the
drill

signaling
to

control

the

advance

bore under

Affidavit

Rodda lix

and
The
brake the

provided

Pason system

is

to

be

to control of

mechanism

24 by means of

stepper motor 26

computer
monitors uses
this

processor the
to

28

In

arrangement

28 and

mud
control the

pressure

by pressure transducer

processor

28
to

to
the

control

stepper
drill

motor 26
weight

permit

12 to

advance

bore under the

of

string

14

October 29

of Terry

lix

7.3.1.2

Element

drilling

pressure

sensor sensor

67
The

Pasons

clearly

includes

drilling

pressure

drilling

fluid

pressure

sensor of

Pason AutoDriller

is

pressure

transducer

is

connected

through

the

EDR

system

which

to

the Pason

control

Pasons

General

Manager

testified

Pason AutoDriller

includes

drilling

fluid

pressure

sensor

lix

pressure

of

drilling

to the

drill

string

is

measured

pressure

transducer

to

the

computer as

one

of

the

drilling

parameters.

Pasons

AutoDriller

User Guide

Manual

confirm

this

as

well

lix
and

The

AutoDriller

system

integrates

with

Pason

EDR
installed for

its

pressure

signals.

AutoDriller

uses

already

the

EDR

lix

addition

the

system

use

RigNet-capable

Box

to

acquire

the

and

pressure

readings.

states

the

same

The

pressure

of the

to

the

drill

measured

38

Case 1:03-cv-02579-RPM
Report
Civil

Document 145
US
Partners
in

Filed 01/11/2007
the

Page 39 of 42

Varco

Action

L.P vs Pawn 03-M-2579
Perkin Engineering

USDC

the

District of

By Gregg
EPI

No
transducer Finally

EP
EDR

Incorporated

pressure

brochure

Ex

confirms

the system

includes

standpipe

pressure

sensor

7.3.1.3

Element
to said pressure
fluid

pressure pressure

regulator said

coupled

sensor

fluid drilling

regulator pressure

measuring

in

and

outputting

representing

68
coupled
to

Pasons

includes

fluid

pressure

regulator

is

the

pressure

sensor..

as

interpreted

Trevor

1-Jolt

testified

that

the

pressure

transducer

outputs

an

analog

signal

with

of

between

and

depending upon

the

pressure

of

drilling

fluid

in

standpipe

milliAmps corresponds

with

pressure

and

corresponds

5000

The

outputted

4-20
This
varies

corresponds

with

pressure

of the

drilling

fluid

in

signal

or changes

in

response

to

changes

in

drilling

fluid

in

the standpipe

Additionallly

Pasons

patent

Mr

Leier

at

least

two

opinions

on February

2000
Pages

October

29 2002
respectively

respectively

whereby

he

concluded

the

same See Exs

You
the

computer 28 which
transducer
in

is

coupled

to

pressure

18

Presumably
signaling an

the

computer by

measures

changes

pressure produces

produced

pressure transducer

intermediate
in

which
signaling
drilling the

representative

the

pressure

Thus

it

would

appear

that

the for

structure

of of on

fluid

pressure patent

regulator is
in

the

claim

out in software

your

apparatus

69
AutoDriller

Moreover

Manager

testified

Ex

that

the

Pason

includes

regulator

as

interpreted

39

Case 1:03-cv-02579-RPM
Report

Document 145
US
Corporation
in

Filed 01/11/2007
USDC
the
District of

Page 40 of 42

Varco

CMI
EPI

Action

L.P vs Pason 03-M-2579
Perkin

BNB
Partners
International

By Gregg

P.E
July

EPr

Incorporated

No

The
is

pressure

of the
pressure as

mud
of the
various pressure
this

supplied

to the
is

drill

string to

measured

transducer
drilling

the

control computer

parameters
including

The
the

computer
supplied transducer braking signaling permit weight the

monitors
drilling

parameters received to control

mud

from the

pressure

and uses

release processor stepper

of

mechanism
to
control
bit

The

computer

produces

to

advance

drill

under

the

drill

70

Furthermore

Pason

according

to

the

details

of

Varney

system which

transducers

to

resistor

Rodda

Ex
Injunction

Para

Pasons

Opposition

to

Motion

Preliminary

Pason
invention

specifically

designed

the

brake

portion

of

system

based

on the

expired

Patent

No

3223183...
to

Similarly

Pason

to

the

that

pressure

transducer

coupled

resistor

was

identical

to

the

pressure

regulator

of

Ex
71
Pason
has the
structure

of

system

includes

drilling

pressure

regulator

to

the

regulator

of

7.3.1.4

Element
pressure signal
drill

to said

fluid

regulator said
fluid

to the output pressure regulator
to

supply

signal at an output thereof

72

Pasons

AutoDriller

as

construed

Mr
is

Trevor

Holt

that

Pason

microcontroller

which

to

signals received

the

pressure

which

the

operation

of

stepper

which

turn

controls

of the

drill

40

Case 1:03-cv-02579-RPM
Report
Civil

Document 145
US
Corporation

Filed 01/11/2007
USDC CEPID
the
District

Page 41 of 42

Varco

vs

Pawn

Action

No
Perkin Partners Incorporated

By Gregg
EPI

No
The

July21 the

brake

with

associated

and stepper

driver

The

stepper

driver

receives

from

telling

it

how

to

respond

stepper

motor

driver

to

these

generating

specific

70

to

the

stepper

drive

motor and

the

force applied

to

the drawworks

These 70

pulses

are

the

signal

operates

the stepper

motor the controller and

direction

force to

be

applied

to

the

Further

as

set

above

represented

AutoDriller

was

built

according

to the

of the

control

system

which

included

signal

produced

through

and power

transformer

that

controls the

the

string

represented

to

the

PTO

that

this

structure

was

identical

to

the

relay..

of

See Pasons

Reexamination

Request

Further

concluded

that

signal

discriminator

was

relay.

of

Claim

7.3.1.5

Element
relay wherein
results

drill

string controller coupled
in

to said

pressure
drill

supplying operates
in in

string

signal that

said drill string

controller to effect
drill

an increase an increase
relay operates
in

rate of
fluid

string
in

and

pressure

results

said

string control said string controller of
to

signal
effect

decrease

the rate of

string
Pasons

73
Motor

Pasons

includes

drill

the

drill

string

that

to

the

The
70

stepper

motor

is

and

to

the

stepper

driver

which generates

volt

control the

degrees

rotation

stepper

41

Case 1:03-cv-02579-RPM
Report
Civil

Document 145
in

Filed 01/11/2007
USDC
for

Page 42 of 42

Varco

L.P vs

Pason

Systems US Corporation
Partners

the

District of

Action

No
Perkin

BNB
P.E
July Engineering

By Gregg
EPI

CEPr

Incorporated

060127 This

2006 transmitted to thereto

motor

rotation

reel

fixed

The

end

of the cable

connected

to

the rigs hoisting

systems

handle

as shown

in

Section

7.2.2

direction

and

reel pulls

or releases

cable

in

turn raise or lower the

It

is

my

understanding

that

has

never

contested

its

accused

system

includes

as claimed

in

Claim

of

142

Patent

Pason describes

as follows

The by operating

Pason system

controls the

string the

means of computer processor
including the

stepper motor under

control of

The

computer monitors
drilling

parameters received

supplied transducer braking signaling pennit weight advantage angular

mud
uses

pressure
this

pressure

and

data to control

mechanism
to control to

The

computer

processor stepper

produces

drill

advance

into

the

bore has very
suitable

of

the

stepper
rotation

the

of

precise

movement
can brake
rate
at

Accordingly
to to

arrangement
the existing

be

couple enable force

stepper the

motor

computer

control the brake
to

which
to control

braking

mechanism
bit

weight

on

bit

the

For
drill bit

the

weight be

on

bit

on the
increase

too

high which
the
bit

corresponding be acted

in

mud

pressure applied
to

will

on by
or halt

the the advance the

drive system to slow well bore drops

the

drill

when

mud

pressure the

supplied

below
be activated
to to to

drilling release

pressure the
drill

stepper

motor

can

mechanism
to

permit with the

advance

proceed

Affidavit of

Rodda

The

stepper

lifts

to

affect

an

increase

in

the rate

of release

the

drill

string

weight

on

bit

and/or

drilling

42