SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 and 15(d) of the
Securities Exchange Act of 1934
Date of Report (date of earliest event reported): June 1, 1998
U.S. ENERGY CORP.
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Exact Name of Registrant as Specified in its Charter)
Wyoming 0-6814 83-0205516
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(State or other (Commission (I.R.S. Employer
jurisdiction of File No.) Identification No.)
incorporation)
Glen L. Larsen Building
877 North 8th West
Riverton, WY 82501
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (307) 856-9271
Not Applicable
(Former Name, Former Address or Former Fiscal Year,
if Changed From Last Report)
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ITEM 5. OTHER EVENTS
As of June 1, 1998 the registrant, Crested Corp. (a majority-owned
subsidiary of the registrant), and Sheep Mountain Partners ("SMP", a partnership
between the registrant and Crested, and Nukem, Inc. and Cycle Resource
Investment Corporation ("CRIC")), entered into a partial settlement with Nukem,
Inc. and CRIC of some of the claims involved in the Sheep Mountain Partners
Arbitration/Litigation. This arbitration/litigation has been previously reported
over many years by the registrant in its 1934 Act filings. Under the partial
settlement, USECC (a joint venture between the registrant and Crested Corp.)
received (i) from SMP an assignment of all of the mining claims and equipment
which had been held by SMP (USECC remains responsible for the reclamation
liabilities associated with the claims as had always been the case when the
properties were in SMP); (ii) from a bank escrow account, $484,361 which
represented USECC's share of profits earned on certain prior deliveries of
uranium under SMP's uranium supply contracts with utilities; (iii) from Nukem
and CRIC $4,540,000 to settle all claims by USECC against Nukem, CRIC and SMP,
except certain claims which remain on appeal with the 10th Circuit Federal Court
of Appeals; (iv) from SMP, a contract to sell 1,076,842 pounds of uranium oxide
to a utility; and (v) from SMP, a contract to purchase 600,000 pounds of uranium
oxide from another producer in North American (200,000 pounds annually through
2000). In connection with the partial settlement, the parties agreed to the
dismissal with prejudice of the Colorado State Court Proceeding (and a Wyoming
State Court proceeding), and all claims in the Federal Proceeding, except for
the issues pending before the Federal 10th Circuit Court of Appeals. The 10th
CCA will decide the limited issues which have not been settled, including the
right of SMP to all of the CIS uranium contracts. The cash settlement portion
under (iii) above is in addition to the $4,367,000 received by USECC in November
1996 out of the SMP escrowed funds.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
U. S. ENERGY CORP.
Dated: July 9, 1998 By: /s/ Max T. Evans
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MAX T. EVANS, Secretary
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