Correction to yesterday's news bulletin bankruptcy court order
The news bulletin issued yesterday regarding the bankruptcy court in Alaska declaring an AOGCC bonding order for Aurora Exploration to be illegal incorrectly states that the judge's ruling stipulates what the bonding should be for Aurora Exploration's acquisition of the Nicolai Creek gas field. The ruling simply declares the AOGCC bonding order to be void because it contravenes U.S. bankruptcy law. The judge did not express any opinion regarding what the bonding stipulations should be.
Petroleum News apologizes for any confusion.
- ALAN BAILEY
Enstar files modified Furie contract; drilling deadline not met
Enstar Natural Gas Co. has asked the Regulatory Commission of Alaska to approve a change in the terms of the utility's gas supply agreement with Furie Operating Alaska, to accommodate a delay in the completion of the third well in Furie's Kitchen Lights gas field. The agreement originally required Furie to complete a third well in the field by the end of 2016, to demonstrate Furie's ability to meet the gas supply commitments in the agreement. But following a delay in the drilling, Enstar agreed to extend the deadline to July 31, 2017.
However, Furie did not manage to complete the well by that July deadline: Enstar has now agreed to extend the deadline to July 31, 2018, but needs RCA approval of the change. The new agreement requires Enstar to provide proof of an alternative source of supply from a viable Cook Inlet producer, should Furie be unable to fully meet its contractual obligations with Enstar. And, under the terms of the original agreement, Furie's failure to meet the drilling deadline has triggered a drop in the price of gas in the contract, Enstar says.
- ALAN BAILEY
See stories in Oct. 1 issue of Petroleum News, available online Friday, Sept. 29 at www.PetroleumNews.com
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