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
March 24, 1997 (March 7, 1997)
Date of Report (Date of earliest event reported)
PEOPLES ENERGY CORPORATION
(Exact name of registrant as specified in its charter)
Illinois 1-5540 36-2642766
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
24th Floor, 130 East Randolph Drive, Chicago, Illinois 60601-6207
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (312) 240-4000
Item 5. OTHER EVENTS
Reference is made to Note 4B, "Former Mineral Processing Site in
Denver, Colorado", of the Notes to Consolidated Financial
Statements in Peoples Energy Corporation's (the Company)
Quarterly Report on Form 10-Q for the quarterly period ended
December 31, 1996.
In 1994, North Shore Gas received a demand from the S.W.
Shattuck Chemical Company, Inc. (Shattuck), a responsible party
under CERCLA, for reimbursement, indemnification and contribution
for response costs incurred at a former mineral processing site
in Denver, Colorado. Shattuck is a wholly owned subsidiary of
Salomon, Inc. (Salomon). The demand alleges that North Shore Gas
is a successor-in-interest to certain companies that were
allegedly responsible during the period 1934-1941 for the
disposal of mineral processing wastes containing radium and other
hazardous substances at the site. The cost of the remedy at the
site has been estimated by Shattuck to be approximately $31
million. Salomon has provided financial assurance for the
performance of the remediation at the site.
North Shore Gas filed a declaratory judgment action against
Salomon in the District Court for the Northern District of
Illinois. The suit asked the court to declare that North Shore
Gas is not liable for response costs incurred or to be incurred
at the Denver site. Salomon filed a counterclaim for costs to be
incurred by Salomon and Shattuck with respect to the site. On
March 7, 1997, the District Court granted North Shore Gas' motion
for summary judgment, declaring that North Shore Gas is not
liable for any response costs in connection with the Denver site.
Salomon may appeal the ruling of the district court to the United
States Court of Appeals, Seventh Circuit.
North Shore Gas does not believe that it has liability for
the response costs, but cannot determine the matter with
certainty. At this time, North Shore Gas cannot reasonably
estimate what range of loss, if any, may occur. In the event
that North Shore Gas incurred liability, it would pursue
reimbursement from insurance carriers, other responsible parties,
if any, and through its rates for utility service.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, as amended, the registrant has duly caused this report to
be signed on its behalf by the undersigned, thereunto duly
authorized.
PEOPLES ENERGY CORPORATION
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(Registrant)
March 24, 1997 By: /s/ K. S. BALASKOVITS
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(Date) K. S. Balaskovits
Vice President and Controller
