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QUAKER STATE ANNOUNCES INTENT TO SELL ITS WEST VIRGINIA COAL ASSETS

 QUAKER STATE ANNOUNCES INTENT TO SELL
 ITS WEST VIRGINIA COAL ASSETS
 OIL CITY, Pa., Oct. 30 /PRNewswire/ -- Quaker State Corporation (NYSE: KSF) announced today that negotiations are nearly complete to sell the West Virginia coal assets of its wholly owned subsidiary, The Valley Camp Coal Company.
 The sale is expected to include the stock of Donaldson Mine Company and Kelley's Creek and Northwestern Railroad Company, Cedar Grove, W.Va., and Great Lakes Coal & Dock Company, St. Paul, Minn. Also, it includes the coal reserves and other assets of Shrewsbury Coal Company, Shrewsbury, W.Va., and additional undeveloped coal reserves and surface interests in West Virginia, Ohio and Pennsylvania held by Valley Camp's Kanawha and Hocking Coal and Coke Company subsidiary.
 Closing is anticipated on or before Nov. 30, contingent upon completion of due diligence investigation by the buyer, successful negotiations with Donaldson Mine Company's contract coal purchasers, and approval by all appropriate boards of directors and expiration of the Hart-Scott-Rodino waiting period. After accounting for certain future employee benefit and other costs, any profits realized from this transaction will be reported by Quaker State at year-end.
 Shrewsbury Mine is scheduled to close on or about Nov. 1, as previously announced. At the end of September, its staff consisted of 89 hourly and 29 salaried employees. Under the terms of the proposed sale, Quaker State will retain responsibility for certain benefits, chiefly retiree health care costs. The buyer will be responsible for all required reclamation and mine closing activities at Shrewsbury Coal Company.
 Donaldson Mine Company currently employs 57 salaried and 222 hourly workers. Kelley's Creek Railroad, which hauls coal from Donaldson Mine to a barge loading facility on the Kanawha River, has 27 hourly and three salaried employees.
 In anticipation of the sale of these assets, Valley Camp also announced that appropriate notices under the Workers Adjustment and Retraining Notification Act of prospective closure were given today to employees of Donaldson Mine Company.
 Quaker State Chairman and CEO Jack W. Corn said, "This sale will be the first step in our announced plan to exit the coal business. Efforts are under way to sell our remaining coal properties, which include The Helen Mining Company in Pennsylvania and Valley Camp of Utah."
 /delval/
 -0- 10/30/92
 /CONTACT: Benton H. Faulkner, manager, public relations of Quaker State, 814-676-7877/
 (KSF) CO: Quaker State Corporation; Arch Mineral Corporation ST: Pennsylvania, West Virginia, Minnesota IN: MNG OIL SU: TNM


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Publication:PR Newswire
Date:Oct 30, 1992
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