NEWS BULLETIN

September 19, 2019 --- Vol. 25, No.37September 2019

Furie gets funding; state files bonding notice

Furie Operating Alaska LLC got some breathing room Sept. 17 as U.S. Bankruptcy Judge Laurie Selber Silverstein ruled to release the company's $15 million post-petition Chapter 11 financing, according to Law360.

Selber Silverstein said she continues to have concerns - as do some of Furie's creditors - about $5 million of the debtor-in-possession funds which the company plans to use to pay prepetition lender fees. No funds will be available to pay creditors.

Meanwhile, on Sept. 11, the state of Alaska filed notice to prospective bidders of certain bonding and assignment requirements that any successful purchaser of debtors' assets must satisfy.

The Department of Natural Resources, Division of Oil and Gas, and the Alaska Oil and Gas Conservation Commission must approve any sale of the debtors' leases and operation.

Any potential buyer of the debtors' leases must qualify with DNR by showing that it is qualified to do business in Alaska, the state said, while a new operator of the debtors' operations must supply a $500,000 statewide bond.

In addition, a potential new lessee must post an additional bond for each lease assignment, to be determined on a lease-by-lease basis, which factors in the estimated amount of the dismantling, removal and restoration obligation; the amount of recoverable oil and gas; and other considerations.

- STEVE SUTHERLIN

Waiting for Arctic plan

Election season is in full swing in Canada, heading towards voting day on Oct. 21, when the legacy of four years in power by Prime Minister Justin Trudeau will be put to the test.

On the list of issues that will come under scrutiny one that rates high is the failure so far of the Liberal government to deliver on its promise of an Arctic Policy Framework, a comprehensive strategy for Canada's North at a time when the Arctic ice cap is shrinking in both area and intensity at a staggering rate, accompanied by economic and military threats in circumpolar regions.

The growing concern among Arctic leaders is a continued slippage of Canada's ranking among Arctic nations, notably the United States, Russia and Denmark, and what has happened to Trudeau's pledge to develop an Arctic Policy Framework, a document that was supposed to be made public this summer.

Amid reports that a scheduled announcement has been scrapped it is unclear whether the policy will be released before the election.

Even though Arctic leaders and polar policy experts have credited the Trudeau administration with making significant investments in the region some warn that those moves could be undermined unless they are supported by an overall strategy.

Politicians in Canada's three territorial governments - Yukon, Northwest Territories and Nunavut - and leaders of indigenous communities have not made things easy for the federal government because of rifts within their ranks over economic development.

But not all hopes for Canada's North have been dashed, starting with a pledge from Transport Minister Marc Garneau to provide C$50 million for preliminary studies and planning for an all-weather road from Yellowknife in the NWT to a deepwater port on Nunavut's central Arctic coast.

The total cost of a road, covering 420 miles, and port has been estimated at C$1 billion.

NWT Industry Minister Wally Schumann said the move will "change the economy of Canada," allowing construction materials to be carried more cheaply and easily by trucks.

It will also bolster Canada's claims to sovereignty in the High Arctic.

Currently, goods and materials are either flown in or shipped on barges that arrive only once a year.

- GARY PARK

See stories in Sept. 22 issue available online Friday, Sept. 20 at www.PetroleumNews.com

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