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Enduro Resource Partners Objection Filed, Schedule Added to Sale Agreement

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The North Dakota Department of Trust Lands, the North Dakota Industrial Commission and the North Dakota  Department of Health filed with the U.S. Bankruptcy Court an objection to Enduro Resource Partners cure notice and proposed assumption and assignment and to sale. The objection asserts, “Under North Dakota law, an operator of oil assets is responsible for reclamation actions with respect to its plugged and abandoned wells….It is customary in sales pursuant to section 363 in other oil and gas industry cases for the purchaser of wells to be responsible for such reclamation liabilities….Critically, Cobra has until July 10, 2018 to provide such an Environmental Defect Notice—eight days after all parties in interest are required to file objections to the proposed sale. North Dakota objects to the APA to the extent that it allows the Debtors and Cobra to preserve the ability to walk away from liabilities that North Dakota, as of the date hereof, reasonably anticipates will be assumed by Cobra pursuant to the APA….In addition to its ability to consummate the transaction by payment of the cash purchase price, Cobra or any Successful Bidder will need to demonstrate its financial ability to cover an estimated up to $22.6 million of reclamation and environmental clean-up obligations related to the wells, and potentially obtain bonding ranging from $1.9 million to $22.6 million, with such amount to be determined pursuant to applicable North Dakota law.” The Debtor also filed with the Court a revised Schedule 7.16 to the North Dakota Stalking Horse Agreement which replaces a corrupted and unreadable version of Schedule 7.16 and is otherwise unchanged.

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The post Enduro Resource Partners Objection Filed, Schedule Added to Sale Agreement appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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