Form 8-K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report(Date of earliest event reported):
March 16, 1999
WESTMORELAND COAL COMPANY
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(Exact name of registrant as specified in its charter)
DELAWARE 0-752 23-1128670
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(State or other jurisdiction (Commission File (I.R.S. Employer
of incorporation or Number Identification
organization) No.)
2 North Cascade Avenue, 14th Floor, Colorado Springs, Colorado 80903
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number,
including area code: 719-442-2600
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Item 5. Other Events
The Company announced today that its affiliate LG&E-Westmoreland has
completed the sale of all of its remaining interest in its 79.6 MW natural gas
fired cogeneration project in Rensselaer, New York, to Fulton Cogeneration
Associates, L.P., an affiliate of The Coastal Corporation. The Partnership is
50% owned by Westmoreland Energy, Inc., a wholly-owned subsidiary of
Westmoreland Coal Company, and 50% owned by LG&E Power, Inc. Closing of the
transaction occurred simultaneously with yesterday's execution of the definitive
purchase agreement. Westmoreland's projected share of the net proceeds is in
excess of $33 million.
Item 7. Financial Statements and Exhibits
(c)
No. Description
99.9 Press release dated March 16, 1999
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: March 24, 1999 /s/ Robert J. Jaeger
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By: Robert J. Jaeger
Senior Vice President-Finance
and Treasurer
<PAGE 1>
EXHIBIT 99.9
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Westmoreland
Sells Interest In Rensselaer
Cogeneration Project
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Colorado Springs, CO -- March 16, 1999 -- Westmoreland Coal Company (OTC
Bulletin Board: WMCL) announced today that its affiliate LG&E-Westmoreland (the
"Partnership") has completed the sale of all of its remaining interest in its
79.6 MW natural gas fired cogeneration project in Rensselaer, New York, to
Fulton Cogeneration Associates, L.P., ("Fulton"), an affiliate of The Coastal
Corporation. The Partnership is 50% owned by Westmoreland Energy, Inc. ("WEI"),
a wholly-owned subsidiary of Westmoreland Coal Company, and 50% owned by LG&E
Power, Inc. Closing of the transaction occurred simultaneously with yesterday's
execution of the definitive purchase agreement. Westmoreland's projected share
of the net proceeds is in excess of $33 million.
"We are very pleased with the additional value Westmoreland will realize from
this strategic sale," said Christopher K. Seglem, Chairman, President and CEO.
"We are always looking for ways to maximize the return to our shareholders and
this sale provided a great opportunity to do so. WEI and LG&E Power are to be
congratulated for developing such an outstanding project. As promised to our
shareholders, we are proceeding with a tender to buy back close to one half of
our preferred shares for cash at a premium to market."
In June, 1998, LG&E-Westmoreland restructured the Rensselaer Project's power
purchase agreement with Niagara Mohawk Power Company ("NIMO") in return for cash
and a transitional power purchase agreement with NIMO. After the Partnership
paid debt obligations and satisfied certain other liabilities, Westmoreland
received net cash proceeds of approximately $30 million. Thus, Westmoreland's
total proceeds from the restructuring and subsequent sale of Rensselaer Project
(which included the transitional power purchase agreement with NIMO) exceeds $63
million.
Westmoreland Coal Company, headquartered in Colorado Springs, CO is currently
engaged in Powder River Basin coal mining, independent power production and coal
shipping and terminal facility operations. Westmoreland owns interests in seven
domestic independent power projects through its wholly owned subsidiary,
Westmoreland Energy, Inc.
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For further information contact Diane Jones (719) 442-2600
