Swist v. MEG Energy Corp.

Swist v. MEG Energy Corp.

On proper claim construction (PSA = petroleum/chemical engineer with 3-5 years SAGD/CSS experience) the Court found: (1) 'communication' means steam-chamber merger; 'generating' requires the third well to causally accelerate merger materially; (2) MEG’s infill wells were mostly used for limited stimulation/production and did not, on the evidence, generate a large singular zone as required by the claims; and (3) claims 1-8 are invalid because they were anticipated by prior patents (Arthur, Brannan, Cyr) and lacked utility (did not reliably enhance SAGD recovery). The result: no infringement and claims invalid.

Citation
2021 FC 10
Parties
Plaintiff (defendant by Counterclaim): Jason Swist; Plaintiff (defendant by Counterclaim): Crude Solutions Ltd.; Defendant (plaintiff by Counterclaim): MEG Energy Corp.
Court
Federal Court
Jurisdiction
Canada
Judgment Date
20 January 2021
Procedural Posture
Patent Infringement and Validity (canadian Patent 2,800,746) / Final Judgment (federal Court, January 20, 2021)
Outcome
Judgment for defendant: MEG’s Christina Lake operations do not infringe claims 1-6 or 8; claims 1-8 of Canadian Patent 2,800,746 are invalid (anticipated and lacking utility).
Legal Topics
Infringement, Anticipation, Obviousness, Utility (inutility), Claim Construction, Steam Assisted Gravity Drainage (sagd)
Source Language
English
Intellectual Property Patent Law Energy Law Oil and Gas Regulation Infringement Anticipation Obviousness Utility (inutility) +2 more

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Parties

Jason Swist

Plaintiff (defendant by Counterclaim)

Crude Solutions Ltd.

Plaintiff (defendant by Counterclaim)

MEG Energy Corp.

Defendant (plaintiff by Counterclaim)

Procedural Posture

Patent Infringement and Validity (canadian Patent 2,800,746) / Final Judgment (federal Court, January 20, 2021)

Legal Issues

  1. 1 Whether MEG’s use of eMSAGP and eMVAPEX at Christina Lake infringed claims 1-6 and 8 of Canadian Patent 2,800,746
  2. 2 Whether claims 1-8 of the 746 Patent are invalid for anticipation, obviousness, inutility, and overbreadth
  3. 3 Construction of key claim terms including “well pairs”, “third well”, “zone of increased mobility”, “communication”, “generating”, and “depletion zone”

Ratio Decidendi

On proper claim construction (PSA = petroleum/chemical engineer with 3-5 years SAGD/CSS experience) the Court found: (1) 'communication' means steam-chamber merger; 'generating' requires the third well to causally accelerate merger materially; (2) MEG’s infill wells were mostly used for limited stimulation/production and did not, on the evidence, generate a large singular zone as required by the claims; and (3) claims 1-8 are invalid because they were anticipated by prior patents (Arthur, Brannan, Cyr) and lacked utility (did not reliably enhance SAGD recovery). The result: no infringement and claims invalid.

Court Disposition

Judgment for defendant: MEG’s Christina Lake operations do not infringe claims 1-6 or 8; claims 1-8 of Canadian Patent 2,800,746 are invalid (anticipated and lacking utility).

Orders

  • MEG’s use of eMSAGP and eMVAPEX at Christina Lake does not infringe claims 1 to 6 or 8 of Canadian Patent 2,800,746.
  • Claims 1 to 8 of Canadian Patent 2,800,746 are invalid as anticipated by US Patent US 7,556,099 (Arthur), US 5,283,111 (Brannan), and US 6,257,334 (Cyr) and are also invalid for inutility.