Union Pacific Resources Co. v. Chesapeake Energy Corp.

236 F.3d 684
CourtCourt of Appeals for the Federal Circuit
DecidedJanuary 5, 2001
DocketNos. 00-1053, 00-1059
StatusPublished
Cited by16 cases

This text of 236 F.3d 684 (Union Pacific Resources Co. v. Chesapeake Energy Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Union Pacific Resources Co. v. Chesapeake Energy Corp., 236 F.3d 684 (Fed. Cir. 2001).

Opinion

RADER, Circuit Judge.

Following a bench trial, the United States District Court for the Northern District of Texas held U.S. Patent No. 5,311,951 (the '951 patent) invalid for no-nenablement and indefiniteness. Union Pac. Res. Co. v. Chesapeake, No. 4:96-CV-726-Y, 1999 WL 1466752 (N.D.Tex. Sept. 21, 1999) ([UPRC). The trial court also determined that Chesapeake Energy Corporation, Chesapeake Operating, Inc., and Chesapeake Exploration Limited Partnership (collectively Chesapeake) did not infringe the '951 patent. Union Pacific Resources Company (UPRC), the owner of the '951 patent, challenges these holdings and contends that the district court erred by admitting certain opinion testimony under Fed.R.Evid. 701. On cross-appeal, Chesapeake challenges the district court’s decision that UPRC did not commit inequitable conduct. Further, Chesapeake contends that the trial court should have found this case to be exceptional and awarded it attorney fees under 35 U.S.C. § 285 (1994).

[688]*688Because the record substantiates the trial court’s enablement and indefiniteness decisions, and because the district court did not abuse its discretion by deciding to admit testimony, or by denying UPRC’s motions for a finding of inequitable conduct or an award of attorney fees, this court affirms.

I.

The '951 patent claims a particular method of horizontal drilling for the exploration of oil and natural gas. In horizontal drilling, as compared to vertical drilling, a well drilling bit may be steered in any direction, resulting in a serpentine borehole (called a horizontal borehole), rather than a straight-down, vertical borehole. With a horizontal borehole, a drill bit can penetrate a thin underground layer of oil or gas and move parallel to the surrounding strata or geologic formations. The path of the borehole therefore remains continuously within that thin layer. When properly directed, a horizontal borehole can provide a flow rate of oil or gas many times greater than that provided by a vertical borehole. Thus, horizontal drilling has allowed effective exploitation of many previously untapped oil and gas reserves.

Knowing the location of a bit relative to the surrounding strata facilitates accurate steering of the bit towards and through a predetermined target zone in the strata. Conventional techniques supply a three-dimensional location of the bit in the borehole relative to a point on the surface. Knowing the bit’s location relative to the surface, however, does not inform one of ordinary skill in the art as to the bit’s location relative to the surrounding strata underneath the surface, which dips and vacillates in the earth.

The '951 patent discloses a method for locating a drill bit in a horizontal borehole relative to the surrounding strata. The method compares “characterizing information,” such as the three-dimensional location of a bit relative to the surface, as well as gamma ray radiation log information obtained from that location, from two different boreholes. Specifically, information from a vertical “offset” borehole is compared to information from a horizontal borehole to determine the orientation of the horizontal borehole relative to the surrounding strata.

The two independent claims of the '951 patent read as follows:

1. A method of determining the location of a borehole relative to strata in the earth, comprising the steps of:
(a) providing information from said borehole, which information characterizes the strata;
(b) providing characterizing information of said strata from an offset location; and
(c) comparing said characterizing information from said borehole to said characterizing information from said offset location to determine the location of selected points along said borehole relative to said strata.
6. A method of determining the location of a borehole in the earth, comprising the steps of:
(a) providing characterizing information of the earth from an offset vertical location;
(b) providing characterizing information of the earth from along the length of said borehole;
(c) rescaling said borehole characterizing information onto a vertical scale; and
(d) comparing said rescaled borehole characterizing information to said offset characterizing information to determine the location of said borehole within said earth.

’951 patent, col. 9,11. 1-13; col. 10,11. 8-19.

After construing the claims of the '951 patent and conducting a bench trial, the district court found that all seven claims of the '951 patent were invalid as non-en[689]*689abled under ¶ 1 and indefinite under ¶ 2 of 35 U.S.C. § 112 (1994). The district court also found that Chesapeake did not infringe any of the claims. UPRC appeals these findings. The district court also refused to find that UPRC engaged in inequitable conduct or that this case was “exceptional” under 35 U.S.C. § 285. Chesapeake cross-appeals with regard to the issues of inequitable conduct and attorney fees. This court has jurisdiction under 28 U.S.C. § 1295(a)(1) (1994).

II.

Claim Construction

Chesapeake, as cross-appellant, contends that the district court erred in its construction of the claims of the '951 patent. Claim construction is a matter of law which this court reviews without deference. Cybor Corp. v. FAS Techs., Inc., 138 F.3d 1448, 1456, 46 USPQ2d 1169, 1174 (Fed.Cir.1998) (en banc ). In its Markman ruling, the district court correctly interpreted “strata in the earth” and “said strata” to mean identifiable and distinguishable layers of material (e.g., rock) beneath the surface of the earth. Union Pac. Res. Co. v. Chesapeake, 4:96-CV-726-Y, slip op. at 7 (N.D. Tex. Nov. 30, 1998), Order Granting In Part Defendants’ Motion for Claim Interpretation Based on Intrinsic Evidence (Markman Motion). The court also correctly interpreted “information characterizes said strata,” “characterizing information of said strata,” and “characterizing information” to mean data produced by logging methods conventional in the industry. These conventional methods permit identification of distinguishing characteristics between layers of rock beneath the surface of the earth. Markman Motion at 7-8. In particular, these phrases can refer to information such as: (1) an X offset (east/west coordinate); (2) a Y offset (north/south coordinate); (3) a true vertical depth (TVD) or Z offset; and (4) a value from a gamma ray log. '951 patent, col. 2,11. 5-8; col. 5,11. 47-56.

The district court interpreted the phrase “comparing said ... characterizing information” in claims 1 and 6 to mean “examining data ... from selected points along a [horizontal] borehole ... against data ...

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Volterra Semiconductor Corp. v. Primarion, Inc.
796 F. Supp. 2d 1025 (N.D. California, 2011)
Johnson & Johnson Vision Care, Inc. v. CIBA Vision Corp.
634 F. Supp. 2d 1293 (M.D. Florida, 2008)
Orion Ip, LLC v. Mercedes-Benz USA, LLC
516 F. Supp. 2d 720 (E.D. Texas, 2007)
Goss v. MAN Roland, et al.
2006 DNH 087 (D. New Hampshire, 2006)
In Re Gabapentin Patent Litigation
395 F. Supp. 2d 164 (D. New Jersey, 2005)
Freedom Wireless, Inc. v. Boston Communications Group, Inc.
369 F. Supp. 2d 155 (D. Massachusetts, 2005)
Nisus Corp. v. Perma-Chink Systems, Inc.
327 F. Supp. 2d 844 (E.D. Tennessee, 2003)
ISCO International, Inc. v. Conductos, Inc.
279 F. Supp. 2d 489 (D. Delaware, 2003)
Competitive Technologies v. Fujitsu Ltd.
286 F. Supp. 2d 1161 (N.D. California, 2003)
University of Rochester v. GD Searle & Co., Inc.
249 F. Supp. 2d 216 (W.D. New York, 2003)
Broadcast Innovation, LLC v. EchoStar Communications Corp.
240 F. Supp. 2d 1127 (D. Colorado, 2003)
VLT, Inc. v. Artesyn Technologies, Inc.
238 F. Supp. 2d 339 (D. Massachusetts, 2003)
The GLEASON WORKS v. Oerlikon Geartec AG
238 F. Supp. 2d 504 (W.D. New York, 2002)

Cite This Page — Counsel Stack

Bluebook (online)
236 F.3d 684, Counsel Stack Legal Research, https://law.counselstack.com/opinion/union-pacific-resources-co-v-chesapeake-energy-corp-cafc-2001.