Feds, Furie Operating, awaiting Jones Act settlement approval

A federal judge has extended the deadlines in a scheduled trial between Furie Operating Alaska LLC and the federal government, as the two sides finalize a settlement in the case of a $15 million fine levied against the company for violating the federal Jones Act.

Judge John W. Sedwick of the U.S. District Court in Alaska extended the discovery and other pre-trial deadlines of the trial by two months, into January and February 2017.

Earlier this year, Furie and the U.S. Department of Homeland Security announced a settlement in the long-running legal dispute, although details of the agreement have been withheld as the two sides seek final authorization from the U.S. Department of Justice.

The Jones Act requires any vessel moving between domestic ports to be built, flagged, crewed and mostly owned by Americans. U.S. Customs and Border Protection assessed a $15 million fine against Furie predecessor Escopeta Oil Co. in October 2011, after the company brought the Spartan 151 jack-up rig to Alaska to explore the offshore Kitchen Lights unit. The following summer, Furie sued the department, calling the fine “unwarranted and unprecedented.” The two sides entered mediation late last year.

In late September, U.S. Attorney Karen L. Loeffler told the court that she expected the Department of Justice to approve the settlement within 45 days. But in a status update submitted on Nov. 24, Loeffler asked for another 30 days, saying she was unsure how long it would take the appropriate officials at the department to reach a final decision.

- ERIC LIDJI