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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): July 11, 1997
P. H. GLATFELTER COMPANY
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(Exact name of registrant as specified in its charter)
Pennsylvania 1-3560 23-0628360
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(State or other (Commission (I.R.S. Employer
jurisdiction of File Number) Identification No.)
incorporation)
Spring Grove, Pennsylvania 17362
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (717) 225-4711
Not Applicable
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(Former name or former address, if changed since last report)
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ITEM 5
The Registrant and six other companies which operate or
formerly operated facilities on the lower Fox River in Wisconsin continue to
negotiate with the State of Wisconsin, the United States Departments of the
Interior and Justice and the United States Fish & Wildlife Service regarding
claims for natural resources restoration and damages under the federal
Comprehensive Environmental Response, Compensation and Liability Act ("CERCLA")
and other laws associated with the alleged discharge of polychlorinated
biphenyls ("PCBs") into the lower Fox River on which the Registrant's Neenah
mill is located. As reported previously, the Registrant and the six other
companies entered into an agreement with the United States which provided that,
between March 1 and May 29, 1997, all limitations periods were tolled and the
parties would forbear from litigation; effective May 29, 1997, the parties
entered into an agreement to extend the time of the tolling and forbearance
agreement to July 28, 1997.
On June 17, 1997, the United States Environmental Protection
Agency ("EPA"), Region 5, announced its intention to begin the process to list
the lower Fox River on the National Priorities List ("NPL") maintained by EPA
under CERCLA. Further, by letter dated July 3, 1997, EPA provided "special
notice" under CERCLA and invited the Registrant and the six other companies to
begin discussions concerning terms under which the companies would agree to
perform a remedial investigation and feasibility study ("RI/FS") for the site
and to further extend the tolling and forbearance agreement. In the event the
companies and EPA are unable to reach agreement on terms under which the
companies would perform the RI/FS, EPA has stated it may conduct an RI/FS and
seek to recover the costs incurred from the companies.
On July 11, 1997, the Wisconsin Department of Natural
Resources, the United States Department of the Interior, the Menominee Indian
Tribe of Wisconsin, the Oneida Tribe of Indians of Wisconsin, the National
Oceanic and Atmospheric Administration and EPA entered into a Memorandum of
Agreement (the "MOA") which provides for coordination and cooperation among
those parties in addressing the release or threat of release of hazardous
substances into the lower Fox River, Green Bay and Lake Michigan environment.
The MOA sets forth a mutual goal of remediating and/or responding to hazardous
substance releases and threats of releases, and restoring injured and
potentially injured natural resources. The MOA further states that, based on
current information, removal of the PCB contaminated sediments in the lower Fox
River is expected to be the principal, but not exclusive, action undertaken to
achieve restoration and rehabilitation of injured natural resources. The MOA
anticipates
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funding from the Registrant and the six other companies, all of which are
identified as potentially responsible parties.
The Registrant, with advice from its environmental
consultants, continues to believe that an aggressive effort to remove PCB
contaminated sediments, many of which are buried under cleaner material or are
otherwise unlikely to move, would be environmentally detrimental and therefore
inappropriate. The Registrant believes it will be able to persuade the parties
to the MOA or a court to that effect. There can be no assurance, however, that
the Registrant will be successful in arguing that removal of PCB contaminated
sediments is inappropriate, or that the Registrant's share of the cost of any
such removal would not have a material adverse effect on the Registrant's
financial condition, liquidity and results of operations.
Nevertheless, the Registrant's current assessment, after
consultation with legal counsel, is that future expenditures for these matters
are not likely to have a material adverse effect on the Registrant's financial
condition or liquidity, but could have a material adverse effect on the
Registrant's results of operations in a given year; however, there can be no
assurance that the Registrant's reserves will be adequate or that a material
adverse effect on the Registrant's financial condition or liquidity will not
occur at some future time.
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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 hereunto duly authorized.
P.H. GLATFELTER COMPANY
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(Registrant)
By: /s/ Robert S. Wood
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Robert S. Wood
Secretary and Treasurer
Date: July 14, 1997
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