Opinion ID: 6536714
Heading Depth: 2
Heading Rank: 1

Heading: All American v. Cook Inlet

Text: The relevant facts of this case are not in dispute. 1 Cook Inlet Energy, LLC operates oil and gas wells in southcentral Alaska. In November 2014 Cook Inlet contracted with All American Oilfield, LLC to drill, complete, engineer and/or explore three wells on Cook Inlet's oil and gas leaseholds. All American began work soon thereafter, including drilling rig operations, digging holes, casing, and completing the gas wells. When All American concluded its work the following summer, Cook Inlet was unable to pay. In June 2015 All American recorded liens against Cook Inlet, including a mine lien under AS 34.35.125 and a mineral dump lien under AS 34.35.140. In October, after its creditors filed an involuntary petition for relief, Cook Inlet consented to Chapter 11 bankruptcy proceedings. In January 2016 All American filed an adversary proceeding in the bankruptcy court to determine the validity and priority of its secured claims. The bankruptcy court found that All American has a valid mine lien against the three wells. 2 But the court denied All American's asserted mineral dump lien against unextracted gas remaining in natural reservoirs. 3 The court also concluded that All American's mine lien is subordinate to Cook Inlet's secured creditors' prior liens, which would consume all of Cook Inlet's assets and leave All American with nothing. 4 All American appealed to the federal district court, which, in turn, certified to us questions regarding the Alaska mineral dump lien statute.