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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-K/A
Amendment No. 1
[ X ] Annual report under Section 13 or 15(d) of the Securities Exchange Act
of 1934 (Fee required)
For the fiscal year ended December 31, 1995
[ ] Transition report under Section 13 or 15 (d) of the Securities Exchange
Act of 1934 (No fee required)
For the transition period from __________ to __________.
Commission File Number 0-9592
LOMAK PETROLEUM, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 34-1312571
(State or Other Jurisdiction of (I.R.S.Employer
Incorporation or Organization) Identification No.)
500 THROCKMORTON STREET
FORT WORTH, TEXAS 76102
(Address of Principal (Zip Code)
Executive Offices)
Registrant's telephone number, including area code: (817) 870-2601
Securities registered pursuant to Section 12(b) of the Act: NONE
Securities registered pursuant to Section 12(g) of the Act:
COMMON STOCK, $.01 PAR VALUE
PREFERRED STOCK, $1 PAR VALUE
(Title of class)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes [ ] No [ X ]
Indicate by check mark if disclosure of delinquent filers pursuant to
Item 405 of Regulation S-K is not contained herein, and will not be contained,
to the best of the registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K/A or any
amendment to this Form 10-K/A. [ X ]
The aggregate market value of voting stock held by non-affiliates of
the registrant as of March 11, 1996, was approximately $124,818,700.
As of March 11, 1996, there were 13,429,111 outstanding shares of the
registrant Common Stock and 1,150,000 outstanding shares of the registrant
Preferred Stock.
Part III of this report incorporates by reference the Registrant's
Proxy Statement relating to the registrant's 1996 Annual Meeting of
Stockholders.
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
AMENDMENT TO APPLICATION OR REPORT
FILED PURSUANT TO SECTION 12, 13, OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
LOMAK PETROLEUM, INC.
FORM 10-K/A
Amendment No. 1
The undersigned registrant hereby amends the following items, financial
statements, exhibits or other portions of its Annual Report on Form 10-K for the
fiscal year ended December 31, 1995 as set forth in the pages attached hereto:
Item 1. Description of the Business
Item 1. Description of the Business
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Item 1 is hereby amended by adding the following sections thereto:
"GOVERNMENTAL REGULATION
The Company's operations are affected from time to time in
varying degrees by political developments and federal, state and local
laws and regulations. In particular, oil and natural gas production and
related operations are or have been subject to price controls, taxes
and other laws and regulations relating to the oil and gas industry.
Failure to comply with such laws and regulations can result in
substantial penalties. The regulatory burden on the oil and natural gas
industry increases the Company's cost of doing business and affects its
profitability. Although the Company believes it is in substantial
compliance with all applicable laws and regulations, because such laws
and regulations are frequently amended or reinterpreted, the Company is
unable to predict the future cost or impact of complying with such laws
and regulations.
ENVIRONMENTAL MATTERS
The Company's oil and natural gas exploration, development,
production and pipeline gathering operations are subject to stringent
federal, state and local laws governing the discharge of materials into
the environment or otherwise relating to environmental protection.
Numerous governmental departments such as the Environmental Protection
Agency ("EPA") issue regulations to implement and enforce such laws,
which are often difficult and costly to comply with and which carry
substantial civil and criminal penalties for failure to comply. These
laws and regulations may require the acquisition of a permit before
drilling commences, restrict the types, quantities and concentrations
of various substances that can be released into the environment in
connection with drilling, production and pipeline gathering activities,
limit or prohibit drilling activities on certain lands lying within
wilderness, wetlands, frontier and other protected areas, require some
form of remedial action to prevent pollution from former operations,
such as plugging abandoned wells, and impose substantial liabilities
for pollution resulting from the Company's operations. In addition,
these laws, rules and regulations may restrict the rate of oil and
natural gas production below the rate that would otherwise exist. The
regulatory burden on the oil and gas industry increases the cost of
doing business and consequently affects its profitability. Changes in
environmental laws and regulations occur frequently, and any changes
that result in more stringent and costly waste handling, disposal or
clean-up requirements could adversely affect the Company's operations
and financial position, as well as the oil and gas industry in general.
While management believes that the Company is in substantial compliance
with current applicable environmental laws and regulations and the
Company has not experienced any material adverse effect from compliance
with these environmental requirements, there is no assurance that this
will continue in the future.
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The Comprehensive Environmental Response, Compensation and
Liability Act ("CERCLA"), also known as the "Superfund" law,
imposes liability, without regard to fault or the legality of the
original conduct, on certain classes of persons who are considered to
be responsible for the release of a "hazardous substance" into the
environment. These persons include the owner or operator of the
disposal site or sites where the release occurred and companies that
disposed or arranged for the disposal of the hazardous substances at
the site where the release occurred. Under CERCLA, such persons may be
subject to joint and several liability for the costs of cleaning up
the hazardous substances that have been released into the environment,
for damages to natural resources and for the costs of certain health
studies and it is not uncommon for neighboring landowners and other
third parties to file claims for personal injury and property damages
allegedly caused by the release of hazardous substances or other
pollutants into the environment. Furthermore, although petroleum,
including crude oil and natural gas, is exempt from CERCLA, at least
two courts have ruled that certain wastes associated with the
production of crude oil may be classified as "hazardous substances"
under CERCLA and thus such wastes may become subject to liability and
regulation under CERCLA. State initiatives to further regulate the
disposal of oil and natural gas wastes are also pending in certain
states, and these various initiatives could have a similar impact on
the Company.
Stricter standards in environmental legislation may be imposed
in the oil and gas industry in the future. For instance, legislation
has been proposed in Congress from time to time that would reclassify
certain oil and natural gas exploration and production wastes as
"hazardous wastes" and make the reclassified wastes subject to more
stringent handling, disposal and clean-up restrictions. If such
legislation were to be enacted, it could have a significant impact on
the operating costs of the Company, as well as the oil and gas industry
in general. Compliance with environmental requirements generally could
have a material adverse effect upon the capital expenditures, earnings
or competitive position of the Company. Although the Company has not
experienced any material adverse effect from compliance with
environmental requirements, no assurance may be given that this will
continue in the future.
The Federal Water Pollution Control Act ("FWPCA") imposes
restrictions and strict controls regarding the discharge of produced
waters and other oil and gas wastes into navigable waters. Permits must
be obtained to discharge pollutants to state and federal waters. The
FWPCA and analogous state laws provide for civil, criminal and
administrative penalties for any unauthorized discharges of oil and
other hazardous substances in reportable quantities and may impose
substantial potential liability for the costs of removal, remediation
and damages. State water discharge regulations and the federal (NPDES)
permits prohibit or are expected to prohibit within the next year the
discharge of produced water and sand, and some other substances related
to the oil and gas industry, to coastal waters. Although the costs to
comply with zero discharge mandated under federal or state law may be
significant, the entire industry will experience similar costs and the
Company believes that these costs will not have a material adverse
impact on the Company's financial condition and results of operations.
Some oil and gas exploration and production facilities are required to
obtain permits for their storm water discharges. Costs may be incurred
in connection with treatment of wastewater or developing storm water
pollution prevention plans.
The Resources Conservation and Recovery Act ("RCRA"), as
amended, generally does not regulate most wastes generated by the
exploration and production of oil and natural gas. RCRA specifically
excludes from the definition of hazardous waste "drilling fluids,
produced waters, and other wastes associated with the exploration,
development, or production of crude oil, natural gas or geothermal
energy." However, these wastes may be regulated by the EPA or state
agencies as solid waste. Moreover, ordinary industrial wastes, such as
paint wastes, waste solvents, laboratory wastes and waste compressor
oils, are regulated as hazardous wastes. Although the costs of managing
solid hazardous waste may be significant, the Company does not expect
to experience more burdensome costs than similarly situated companies
involved in oil and gas exploration and production.
In addition, the U.S. Oil Pollution Act ("OPA") requires
owners and operators of facilities that could be the source of an oil
spill into "waters of the United States" (a term defined to include
rivers, creeks, wetlands and coastal waters) to adopt and implement
plans and procedures to prevent any spill of oil into any waters of the
United States. OPA also requires affected facility owners and operators
to demonstrate that they have at least $35 million in financial
resources to pay for the costs of cleaning up an oil spill and
compensating any parties damaged by an oil spill. Substantial civil and
criminal fines and penalties can be imposed for violations of OPA and
other environmental statutes.
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the registrant has duly caused this Form 10-K/A, Amendment
No. 1 to its Annual Report on Form 10-K, to be signed on its behalf by the
undersigned, thereunto duly authorized.
LOMAK PETROLEUM, INC.
By:
/s/ Thomas W. Stoelk
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Thomas W. Stoelk
Chief Financial Officer and
Vice President-Finance
Date: March 7, 1997
