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: September 20, 1996
BLACK HILLS CORPORATION
State of South Dakota File Number 1-7978 IRS Number 46-0111677
625 Ninth Street
Rapid City, South Dakota 57709
Registrant's telephone number (605) 348-1700
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Item 5. OTHER EVENTS
WYODAK RESOURCES DEVELOPMENT CROP., A SUBSIDIARY OF BLACK
HILLS CORPORATION, AGREES TO PURCHASE CLOVIS POINT MINE
PROPERTIES
Black Hills Corporation ("Company") announced today that its subsidiary,
Wyodak Resources Development Corp. ("Wyodak Resources"), has entered
into an agreement to purchase a portion of the Clovis Point Mine
properties from Kerr-McGee Coal Corporation, subject to the Bureau of
Land Management's approval of a logical mining unit which will include
the new reserves. The Clovis Point Mine properties are located adjacent
to Wyodak Resources' current reserves in Campbell County, Wyoming, and
consist of State of Wyoming and federal leased coal reserves and
facilities that will allow unit train loadout capabilities.
Wyodak Resources' current long-term coal contracts result in sufficient
annual production that upon approval of the logical mining unit Wyodak
Resources will be able to increase its federal and state leased coal
reserves from approximately 173 million tons to 300 million tons.
The purchase price for the acquisition consists of Wyodak Resources'
obligation to assume the responsibility for the reclamation of an
existing Clovis Point open pit and to pay Kerr-McGee overriding
royalties if and when coal is produced from the acquired properties
without any obligation of Wyodak Resources to mine the coal.
Daniel P. Landguth, Chairman, President and Chief Executive Officer of
the Company, said, "While the acquisition may give us some opportunities
in the short run, we do not anticipate that this acquisition will result
in increased coal sales until the market for coal improves. However,
the acquisition, along with our long-term coal contracts, presented us
an opportunity without any substantial payment of capital to hold
increased reserves and, with unit train loadout capabilities, to be
better able to acquire additional sales when market conditions allow.
The combined reserves will allow the Company to operate more efficiently
by having a more contiguous mine plan and by utilizing the existing
Clovis Point open pit when Wyodak Resources operations move north of the
interstate."
Wyodak Resources will incur holding costs from this transaction in the
$250,000 to $500,000 range, annually.
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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.
BLACK HILLS CORPORATION
By /S/ ROXANN R. BASHAM
Roxann R. Basham, Corporate
Secretary/Treasurer
Dated: September 20, 1996
