SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): Aug. 21, 1995
Westmoreland Coal Company
(Exact name of registrant as specified in its charter)
Delaware 0-752 23-1128670
(State or other (Commission File (IRS Employer
jurisdiction of Number) Identification No.)
incorporation)
700 The Bellevue, 200 South Broad Street
Philadelphia, Pennsylvania 19102
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (215) 545-2500
Item 2. Acquisition or Disposition of Assets.
On August 25, 1995, the Company announced that it had completed
the sale of the remaining term of its coal supply agreement with
Duke Power Company for approximately $23 million in cash.
Item 7. Exhibits.
Press release dated August 25, 1995.
EXHIBIT INDEX
Sequentially
Exhibit Description of Exhibit Numbered
Number Page
1 Press release dated August 25, 1995 4
SIGNATURE
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, thereunto duly authorized.
WESTMORELAND COAL COMPANY
Date: September 1, 1995 By:_____________________________
Theodore E. Worcester
Vice President and General Counsel
Westmoreland Completes Sale of Coal Supply Agreement;
Receives Favorable Ruling on Independent Power Litigation
Philadelphia, PA - August 25, 1995 - Westmoreland Coal
Company (NYSE:WCX) announced today that it has completed
the sale of the remaining term of its coal supply agreement
with Duke Power Company for approximately $23 million in
cash. The transaction involved a buy-out by Duke Power of
the coal supply agreement which was originally entered into
on January 1, 1986 and had escalated to a price
substantially above market in recent years. Westmoreland
supplied approximately 3 million tons of coal per year
under the agreement.
Duke Power Company had become the sole customer of
Westmoreland's Virginia Division, located in Wise and Lee
counties, Virginia, and, as previously announced, the
Division was idled earlier this month after the Company
reached agreement with Duke. The Division had struggled
for several years with losses unexpectedly continuing and
increasing over the last three quarters. The Division
lost $8.4 million in the second quarter of 1995.
Westmoreland continues to pursue potential purchasers
for the remaining Virginia Division assets, and negotiations
are ongoing. Additional details related to the sale of
the remaining Virginia Division assets will be announced
at the completion of these negotiations.
The sale of the Duke contract represents the completion
of a significant piece of the Company's plan to dispose
of underperforming assets and raise cash to meet ongoing
requirements through 1996 and beyond.
On August 9, 1995 The Roanoke Valley I Partnership received
a favorable decision from the Circuit Court of the City of
Richmond, Virginia when it denied Virginia Power's motion
to dismiss the Partnership's amended complaint in the
dispute between the Partnership and Virginia Power over
the interpretation of the Forced Outage Day provisions in
the power sales agreement between the parties. This case
will now proceed with pre-trial preparations. At stake
are capacity payments the Partnership believes are due
from Virginia Power. Through July 31, 1995 the Company
has reserved $3.5 million for its share of payments the
utility has held back.
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For information contact Diane Jones (804-980-5214)
