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)
MARCH 24, 1999
ATMOS ENERGY CORPORATION
(Exact Name of Registrant as Specified in its Charter)
TEXAS AND VIRGINIA 1-10042 75-1743247
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(State or Other Jurisdiction (Commission (I.R.S. Employer
of Incorporation Organization) File Number) Identification No.)
1800 THREE LINCOLN CENTRE, 5430
LBJ FREEWAY, DALLAS, TEXAS 75240
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(Address of Principal Executive (Zip Code)
Offices)
Registrant's Telephone Number, Including Area Code
(972) 934-9227
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(Former Name or Former Address, if Changed Since Last Report)
ITEM 5. OTHER EVENTS.
On March 24, 1999, Atmos Energy Corporation announced in a news
release that it had entered into a settlement of the case of Brian
L. Heard General Contractor v. Trans Louisiana Gas Company,
a division of Atmos Energy Corporation.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits
99.1 News Release of Atmos Energy Corporation dated
March 24, 1999.
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.
ATMOS ENERGY CORPORATION
(Registrant)
DATE: March 26, 1999 By: /s/ GLEN A. BLANSCET
Glen A. Blanscet
Vice President, General
Counsel and Corporate Secretary
EXHIBIT INDEX
Item Number Description Page
99.1 News Release of Atmos Energy Corporation
dated March 24, 1999
EXHIBIT 99.1
[ATMOS ENERGY CORPORATION LETTERHEAD AND LOGO APPEAR HERE]
DATE: March 24, 1999 MEDIA & INVESTOR/ANALYST CONTACTS:
Lynn Hord (972) 855-3729
Carol Knies (972) 855-3116
FOR RELEASE: Immediately
ATMOS ENERGY ANNOUNCES
SETTLEMENT OF HEARD CASE
Dallas, Texas - Atmos Energy Corporation (NYSE: ATO) today reported
that it has reached a settlement in the case of Brian L. Heard
General Contractor v. Trans Louisiana Gas Company ("Trans La"), a
division of Atmos Energy Corporation. As a result of recent
mediation discussions, the parties agreed to settle the case for
$3.5 million. In the settlement, neither Atmos nor Trans La
conceded liability.
Atmos will pay $3.25 million and the remaining $.25 million will be
paid by Oceana Heights Gas Company's insurers. In exchange, the
Company will obtain a full release from Heard of all claims against
Atmos and Trans La. Atmos' portion of the settlement payment will
result in the Company recording a $3.25 million pretax, $2.05
million after tax, $.07 per share charge in the second quarter
ending March 31, 1999.
The lawsuit was originally filed in Louisiana by Heard for lost
profits that he incurred as a result of Oceana Heights Gas Company's
alleged delays in repairing gas leaks on its lines in the area in
which Heard was working. These alleged delays occurred prior to the
acquisition of Oceana Heights by Trans La and Atmos Energy
Corporation. The jury found in favor of Heard in November 1997 and
awarded Heard approximately $180,000 in compensatory damages and $15
million in punitive damages. The punitive damages were awarded
under a since-repealed statute in Louisiana allowing punitive
damages in cases involving hazardous materials, specifically
including natural gas.
Atmos immediately appealed the jury verdict, believing the award to
be egregiously in excess of damages claimed by Heard. Atmos
continues to hold this belief but given the uncertainties of
litigation, decided during mediation that continuing to litigate
this case would take away from the important focus on operations and
growth. The potential exposure to Atmos was the $15 million awarded
by the jury, plus interest that was accruing at approximately $1
million a year since the date the lawsuit was filed in 1996. Atmos'
potential exposure to date was $19 million and could have reached
$21 million if all appeals were exhausted through state courts.
"Due to the uncertainty of litigation, we believe it is in Atmos'
best interest to eliminate the risk involved in the case and to move
forward with running our business", said Robert W. Best, Atmos
Chairman, President and CEO.
Atmos Energy Corporation distributes natural gas and propane to more
than one million customers in 13 states through its operating
divisions - Energas Company, Greeley Gas Company, Trans Louisiana
Gas Company, United Cities Gas Company, Western Kentucky Gas Company
and Atmos Propane, Inc.
