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QUAKER STATE SELLS CERTAIN COAL ASSETS, PLANS TO TAKE FASB 106 WRITE-OFF IN 1992

 OIL CITY, Pa., Dec. 30 /PRNewswire/ -- Quaker State Corporation (NYSE: KSF) has completed the sale of certain assets of its subsidiary, The Valley Camp Coal Company, to Arch Mineral Corporation, St. Louis, a coal producer owned jointly by Ashland Coal Company (NYSE: ACI) and the Hunt family of Texas, it was announced today.
 Under terms of the agreement, Quaker State will receive approximately $50 million plus a 19 year royalty payment stream as compensation for the assets of Shrewsbury Mining Company, Shrewsbury, W.Va., and the stock of Great Lakes Coal and Dock Co., St. Paul, Minn. Also, Valley Camp has terminated by mutual agreement its contract to sell coal produced at its Donaldson Mine Company operation, Cedar Grove, W.Va., to an electric utility customer.
 Quaker State President Conrad A. Conrad said, "This transaction will provide a positive cash flow and a net profit. Quaker State will use $20 million of the proceeds to reduce consolidated corporate debt by paying off the long-term debt of Donaldson Mine Company."
 Conrad noted, "This is the first transaction to be completed in our effort to exit the coal business. During 1993, we expect to dispose of Valley Camp's remaining properties in Pennsylvania, Utah and West Virginia."
 -- FASB rule 106 plans announced
 Conrad also revealed that the company plans to record the full cost of its future retiree health benefit obligations, as required by Financial Accounting Standards Rule 106, in 1992. This pre-tax expense will be in the range of $100 to $115 million, and will require restatement of results for the prior three quarters of 1992.
 Complete financial information will be provided in the company's year-end report of results.
 -0- 12/30/93
 /CONTACT: Benton H. Faulkner of Quaker State, 814-676-7877, or at home, 814-676-2052/
 (KSF ACI)


CO: Quaker State Corporation ST: Pennsylvania IN: OIL MNG SU:

CD-MS -- PG001 -- 0645 12/30/92 14:15 EST
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Publication:PR Newswire
Date:Dec 30, 1992
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