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
March 24, 1997 (March 7, 1997)
Date of Report (Date of earliest event reported)
NORTH SHORE GAS COMPANY
(Exact name of registrant as specified in its charter)
Illinois 2-35965 36-1558720
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
24th Floor, 130 East Randolph Drive, Chicago, Illinois 60601-6207
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (312) 240-4000
Item 5. OTHER EVENTS
Reference is made to Note 4B, "Former Mineral Processing Site in
Denver, Colorado", of the Notes to Consolidated Financial
Statements in North Shore Gas Company's (the Company) Quarterly
Report on Form 10-Q for the quarterly period ended December 31,
1996.
In 1994, the Company received a demand from the S.W.
Shattuck Chemical Company, Inc. (Shattuck), a responsible party
under CERCLA, for reimbursement, indemnification and contribution
for response costs incurred at a former mineral processing site
in Denver, Colorado. Shattuck is a wholly owned subsidiary of
Salomon, Inc. (Salomon). The demand alleges that the Company is
a successor-in-interest to certain companies that were allegedly
responsible during the period 1934-1941 for the disposal of
mineral processing wastes containing radium and other hazardous
substances at the site. The cost of the remedy at the site has
been estimated by Shattuck to be approximately $31 million.
Salomon has provided financial assurance for the performance of
the remediation at the site.
The Company filed a declaratory judgment action against
Salomon in the District Court for the Northern District of
Illinois. The suit asked the court to declare that the Company
is not liable for response costs incurred or to be incurred at
the Denver site. Salomon filed a counterclaim for costs to be
incurred by Salomon and Shattuck with respect to the site. On
March 7, 1997, the District Court granted the Company's motion
for summary judgment, declaring that the Company is not liable
for any response costs in connection with the Denver site.
Salomon may appeal the ruling of the district court to the United
States Court of Appeals, Seventh Circuit.
The Company does not believe that it has liability for the
response costs, but cannot determine the matter with certainty.
At this time, the Company cannot reasonably estimate what range
of loss, if any, may occur. In the event that the Company
incurred liability, it would pursue reimbursement from insurance
carriers, other responsible parties, if any, and through its
rates for utility service.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, as amended, the registrant has duly caused this report to
be signed on its behalf by the undersigned, thereunto duly
authorized.
NORTH SHORE GAS COMPANY
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(Registrant)
March 24, 1997 By: /s/ K. S. BALASKOVITS
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(Date) K. S. Balaskovits
Vice President and Controller
