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Agreement Reached in Kenai Loop Gas Dispute - Radio Kenai
Agreement Reached in Kenai Loop Gas Dispute
10 years ago
An agreement has been reached to dismiss the Cook Inlet Region Inc. lawsuit which sought relief for owed gas royalties against Buccaneer Energy.
CIRI, the Alaska Mental Health Land Trust Authority, Department of Natural Resources, and AIX Energy signed a joint request for dismissal January 23.
That request absolves CIRI’s $5.75 million proofs of claim filed against Buccaneer in September.
That lawsuit was filed by CIRI and the State of Alaska claiming Buccaneer has been illegally tapping the underground reserves of Kenai Loop 1-1 and 1-3 wells and not paying royalties to surrounding land owners.
Buccaneer filed Chapter 11 bankruptcy and soon after, the recently formed AIX Energy LLC agreed to be the “stalking horse bidder”, which ensures the seller gets a certain minimum amount for its assets by making an initial bid of $58,476,264.71 of nearly all of Buccaneer’s assets.
AIX Energy LLC is a shell subsidiary of one of Buccaneer’s financiers, Meridian Capital International Fund.