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):
August 27, 1997
THE PITTSTON COMPANY
(Exact Name of registrant as specified in its charter)
Virginia 1-9148 54-1317776
(State or other (Commission (I.R.S. Employer
jurisdiction File Number) Identification No.)
of Incorporation)
1000 Virginia Center Parkway
P. O. Box 4229
Glen Allen, VA 23058-4229
(Address of principal (Zip Code)
executive offices)
(804)553-3600
(Registrant's telephone number, including area code)
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Item 5. Other Events
As previously reported, in April 1990, the Registrant
entered into a settlement agreement to resolve certain
environmental claims against the Registrant arising from
hydrocarbon contamination at a petroleum terminal facility
("Tankport") in Jersey City, New Jersey, which operations were
sold in 1983. Under the settlement agreement, the Registrant is
obligated to pay for 80% of the remediation costs.
Based on data available to the Registrant and its
environmental consultants, the Registrant estimates its portion
of the cleanup costs, on an undiscounted basis, using existing
technologies to be between $6.9 million and $17.0 million over a
period of up to five years. Management is unable to determine
that any amount within that range is a better estimate due to a
variety of uncertainties, which include the extent of the
contamination at the site, the permitted technologies for
remediation and the regulatory standards by which the clean-up
will be conducted. The clean-up estimates have been modified
from prior years' in light of cost inflation. The estimate of
costs and the timing of payments could change as a result of
changes to the remediation plan required, changes in the
technology available to treat the site, unforseen circumstances
existing at the site and additional cost inflation.
The Registrant commenced insurance coverage litigation in
1990, in the United States District Court for the District of New
Jersey, seeking a declaratory judgment that all amounts payable
by the Registrant pursuant to the Tankport obligation were
reimbursable under comprehensive general liability and pollution
liability policies maintained by the Registrant. In August 1995,
the District Court ruled on various Motions for Summary Judgment.
In its decision, the Court found favorably for the Registrant on
several matters relating to the comprehensive general liability
policies but concluded that the pollution liability policies did
not contain pollution coverage for the types of claims associated
with the Tankport site. The Registrant appealed the District
Court's decision to the Third Circuit, which on August 27, 1997,
reversed the District Court and remanded the case for trial on
the issue of coverage under the pollution liability policies.
Management and its outside legal counsel continue to believe that
recovery of a substantial portion of the cleanup costs ultimately
will be probable of realization. It is the Registrant's belief
that, based on estimates of potential liability and probable
realization of insurance recoveries, the Registrant would be
liable for approximately $1.4 million based on the Court's
decision and related developments of New Jersey law.
<PAGE>
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.
THE PITTSTON COMPANY
(Registrant)
By /s/ Austin F. Reed
Vice President, General
Counsel and Secretary
Dated: September 5, 1997
