Canadian Lawyer InHouse

36 include Allen & Overy LLP, Baker & Mc- Kenzie LLP, Clifford Chance LLP, Ever- sheds LLP, Norton Rose Fulbright Canada LLP, and Reed Smith LLP. "From our assessment of the fi rms we were working with, those were the ones with a wide enough global footprint to make sense for Shell lawyers to use wherever they are around the world," says Gordon McCue, associate general counsel, global litigation, at Shell Canada Ltd. McCue led the team that conducted the review process, which included people from Houston, London, and the Netherlands. McCue is responsible for ensuring Shell's global litigation organization is effectively using all of the litigation management tools and processes that allow Shell to reduce and manage risks associated with all aspects of litigation and dispute resolution globally, in approximately 90 countries. McCue man- ages a team of 23 lawyers, paralegals, and other professionals in Houston and London. The company was looking to focus its relationships and narrow the pool not just with global fi rms but fi rms it uses in all jurisdictions. Donny Ching, Shell's legal director, wanted to simplify by reducing the number of fi rms overall and improve part- nerships with the top six fi rms. "The idea was to have a closer relationship with those fi rms and add value going both ways," says McCue. "We want to give fi rms a window into our business world and what the challenges are to our business world." With litigation being such a heavy user of external counsel within Shell, it was that AS THE ENERGY SECTOR braces for a "lower for longer" oil price environment, companies like Shell are looking for ways to fi nd effi ciencies and cut external legal costs. That's why Shell's recent global legal panel review was more comprehensive and exacting than ever before. The company went to six from 11 global fi rms for big- ticket work around the world. Those fi rms practice group that has led the charge of putting such programs into place. Two years ago, the global litigation team for Shell dropped the hourly rate compen- sation model for external counsel fi rms on all matters. Then-general counsel Brad Nielson was on the verge of retirement and went out with a bang, saying in early 2014 that, as of June 1, every new matter would be on an "appropriate fee arrangement." An hourly rate basis would require approval from him, but all indications were the an- swer would almost always be "no." "We put together a program and edu- cated the fi rms we were working with about what this meant for them and how to work in an appropriate fee arrangement world," says McCue. The law fi rm review process this time around considered each fi rm's diversity, data privacy, alternative or "appropriate" fee arrangements, and cybersecurity policies. On the diversity issue, fi rms had to provide a breakdown of their diversity profi le and a plan for the future. Panel fi rms also have to provide quarterly business reports and that includes diversity statistics. The six global fi rms won't do all the work for Shell around the world — lawyers in the 900-plus, 45-country legal team for the company have fl exibility to use others in local jurisdictions when it makes sense from an expertise and cost perspective. THE CANADIAN PANEL Shell has local panels established in about 11 jurisdictions. There are six Canadian fi rms on the panel in this country, which include global panellist Norton Rose Fulbright as well as a couple of boutique Narrowing the roster Shell pares down global legal panel in climate of 'lower for longer' oil. BY JENNIFER BROWN JULY 2016 INHOUSE

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