Peterson was a survivor aboard Sevastopol Station.
Peterson was a member of a group of survivors during the Xenomorph outbreak on the station. Along with Francis and an unnamed third survivor, they were trapped in Seegson Synthetics. Shortly before Amanda Ripley encountered them, they were ambushed by a group of looters and lost a member of their team. Ripley overheard Peterson panicking after the incident, with Francis having to calm him down.
The three men eventually managed to get into contact with another survivor named Mahoney, presumably another member of their group. They were informed by Mahoney that they could power up the elevator with the help of a Working Joe. However, Peterson and Francis both responded angrily to the suggestion, with Peterson labeling the idea as "insane," as many of the Working Joes had become hostile.
Peterson then mentioned an explosion he heard earlier and asked what caused it. The third survivor replied that it must have been Waits who caused it, as he had been setting up traps for the Xenomorph Drone. Peterson then mentioned that he heard Waits had a safe haven in the Colonial Marshals Bureau, but Francis declined the suggestion, saying that the "Crazy fucker's blowing stuff up. No thanks."
While Peterson and the third survivor were investigating the floor grating (likely out of suspicion of hiding looters), Francis suddenly warned them of the Xenomorph Drone lurking in the ventilation shaft above them. As they looked up, the Drone immediately dropped down and landed on them, dragging them both aside and swiftly killing them.
Peterson was armed with a .357 Revolver. However, he was killed by the Drone before he could use it.