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: July 22, 1997
Colonial Gas Company
(Exact name of registrant as specified in its charter)
Massachusetts 0-10007 04-1558100
(State of (Commission File (IRS Employer
incorporation) Number) Identification No.)
40 Market Street, Lowell, Massachusetts 01853
(Address of principal executive offices and zip code)
(508) 322-3000
(Registrant's telephone number, including area code)
[END OF COVER PAGE]
Item 5. Other Events
On July 22, 1997, Colonial Gas Company ("Colonial")
and Cabot LNG Corporation ("Cabot LNG") jointly reported
that the Massachusetts Department of Public Utilities ("DPU")
had declined to approve the contract relating to utilization
of Colonial's Tewksbury LNG facility under their proposed
joint venture. The commencement of the joint venture between
Colonial and Cabot LNG was contingent upon such approval. A
July 22, 1997 Press Release,jointly issued by Colonial and
Cabot LNG and further detailing the DPU's decision and
Colonial and Cabot LNG's response,is included herewith as
Exhibit 20 and is also incorporated herein by reference.
Item 7. Financial Statements, Pro Forma Financial
Information and Exhibits:
(c) Exhibits:
Number and Description of Exhibit
20. July 22, 1997 Press Release entitled "Colonial Gas
Company and Cabot LNG Corporation Respond to DPU
Decision."
SIGNATURES
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 hereunder duly
authorized.
COLONIAL GAS COMPANY
Date: July 22, 1997 By:
______________________
F.L. Putnam, III
President and
Chief Executive Officer
[EXHIBIT 20 TO COLONIAL GAS COMPANY FORM 8-K DATED July 22, 1997]
FOR IMMEDIATE RELEASE:
July 22, 1997
CONTACTS: Dennis Carroll Jane Michalek
Vice President and Treasurer Vice President
Colonial Gas Company Cabot LNG Corporation
(508) 322-3413 (617) 526-8333
COLONIAL GAS COMPANY AND CABOT LNG CORPORATION
RESPOND TO DPU DECISION
Lowell, MA (July 22, 1997)----Colonial Gas Company and Cabot
LNG Corporation reported today that the Massachusetts Department
of Public Utilities (DPU) has declined to approve the 20-year
contract relating to utilization of Colonial's Tewksbury
Massachusetts LNG facility under their proposed joint venture.
The DPU concluded that it could not make an appropriate
determination of the Tewksbury LNG facility's value until
comprehensive unbundling and a fully competitive natural gas
market occurred. In that connection, the DPU concurrently issued
a letter to Colonial and the other investor-owned gas utilities
in Massachusetts directing them to commence by August 15, 1997
collaborative discussions on developing unbundled retail natural
gas services, and to issue a status report on their discussions
by November 15, 1997. The proposed joint venture arrangements
would have combined Cabot LNG's resources with those of the
Tewksbury LNG facility and with Colonial's LNG trucking subsidiary,
Transgas Inc., in order to provide additional LNG trucking, storage
and related services to the energy market in the Northeast United
States.
Consistent with the DPU's decision, Colonial and Cabot LNG are
examining other ways in which to enhance the overall value of LNG
as a competitive peak season and supplemental fuel choice. F. L.
Putnam, III, President and CEO of Colonial Gas Company, said:
"Colonial continues to believe that LNG related services will be
increasingly important as the natural gas industry evolves toward
further unbundling and greater customer choice. Although we are
disappointed by the DPU's decision on the proposed joint venture
contract, we remain committed to looking for ways to enhance
the utilization of existing assets for the benefit of our customers
and stockholders."
Colonial Gas Company (NASDAQ: CGES), a Massachusetts corporation
formed in 1849, is primarily a regulated natural gas distribution
utility. Colonial serves over 149,000 utility customers in 24
municipalities located northwest of Boston and on Cape Cod. Through
Transgas, a wholly-owned subsidiary, Colonial also provides
over-the-road transportation of liquefied natural gas, propane, and
other commodities.
Cabot LNG Corporation, established in 1989, is a subsidiary of
Boston-based Cabot Corporation (NYSE: CBT). Cabot LNG imports
liquefied natural gas via the Everett, Mass., LNG import terminal
owned by its subsidiary, Distrigas of Massachusetts Corporation, to
meet the specialized needs of gas and electric utilities,
independent power producers and industry. Cabot LNG holds a 10
percent interest in the LNG export project developed by Atlantic
LNG Company of Trinidad and Tobago at Point Fortin, Trinidad, and holds
purchase contracts for 60 percent of the plant's design
capacity of approximately 400 million cubic feet of LNG per day
which is targeted for Northeast markets.
[END OF EXHIBIT 20 TO COLONIAL GAS COMPANY FORM 8-K DATED
JULY 22,1997]
