Printer Friendly

ALAMCO SETTLES GAS PURCHASE CONTRACT CLAIMS

 ALAMCO SETTLES GAS PURCHASE CONTRACT CLAIMS
 CLARKSBURG, W.Va., June 9 /PRNewswire/ -- Alamco, Inc. (AMEX: AXO)


announced today that Columbia Gas Transmission Corporation has agreed to settle Alamco's gas purchase contract claims against Columbia for $11 million, subject to approval by the bankruptcy court supervising Columbia's bankruptcy proceedings and Columbia's creditors.
 John L. Schwager, president and chief executive officer, stated that Alamco's share of the claim would be approximately 45 percent with the balance held by other interest owners in the wells subject to the Columbia contracts. The timing and actual amount which may be paid to Alamco and other interest owners by Columbia, however, will be affected by the terms of any bankruptcy plan that may be approved by the bankruptcy court.
 Under the settlement agreement, Alamco has agreed to stay pending litigation in West Virginia state court, which was scheduled for trial in July 1992, and in federal district court, arising out of Columbia's failure to resume purchases of gas since 1986 at the price which Alamco claimed Columbia was required to pay under the gas purchase contracts. The settlement agreement further provides that Alamco will terminate such litigation upon bankruptcy court approval and implementation of the terms of the settlement agreement.
 Alamco has been selling all of the gas production covered by Columbia contracts to third parties since 1986 and intends to continue making sales through marketing companies or directly to end users.
 Alamco, headquartered in Clarksburg, is an independent producer of gas and oil in the Appalachian Basin with a major operating concentration in West Virginia gas fields. The company's stock is traded on the American Stock Exchange under the symbol AXO.
 -0- 6/9/92
 /CONTACT: Jane Merandi of Alamco, 304-623-6671/
 (AXO) CO: Alamco, Inc.; Columbia Gas Transmission Corporation ST: West Virginia IN: OIL SU:


CD-JS -- PG001 -- 8205 06/09/92 08:29 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jun 9, 1992
Words:309
Previous Article:MIDWESTERN LAW FIRM'S GROWTH CONTRADICTS NATIONAL TREND
Next Article:OHIO-BASED STEELMAKERS FILE ANTI-DUMPING PETITION
Topics:


Related Articles
NOBLE AFFILIATES SUBSIDIARY ENTERS AGREEMENT TO SETTLE CLAIM IN COLUMBIA TRANSMISSION BANKRUPTCY CASE
BANKRUPTCY COURT APPROVES SETTLEMENT AGREEMENT BETWEEN COLUMBIA TRANSMISSION AND PRODUCER CREDITORS
TESORO ANNOUNCES COURT DECISION ON MAJOR NATURAL GAS CONTRACT DISPUTE
ALAMCO, INC. ANNOUNCES RECEIPT OF SETTLEMENT PROCEEDS FROM COLUMBIA GAS TRANSMISSION CORPORATION
Tenneco Energy Will Seek to Recover Overpayments from Coastal, Tesoro and KCS
Tipperary Corporation Joins Group Seeking Damages in Gas Contract Claim
Columbia's E&P Company Plans to Buy Alamco; Will Become Largest Producer in Appalachia
Alamco and CNR Sign Merger Agreement
Columbia Gas Announces 3rd Quarter Dividend Of 25 Cents per Common Share of Stock
Builder settles lawsuits alleging it botched job on Coos County gas line.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters