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Bug: Cannot create a network dataset on feature classes with an R-tree or quadtree index in Oracle Spatial

Description

When creating a new network dataset on an ArcSDE server with an Oracle Spatial DBMS, ArcCatalog fails with the error message:

"Could not create network dataset"

Cause

The network dataset is being created on a feature class that has an R-tree index or a quadtree index.

A feature class with an R-tree index is indicated with a grid size of -1, while a feature class with a quadtree index is indicated with a grid size of -2. When creating the network dataset, ArcCatalog is failing to determine the correct spatial grid.

Workaround

Create the network dataset on feature classes where the grid sizes are explicitly stated.