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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.
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 29, 1996.
LYONDELL PETROCHEMICAL COMPANY
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
DELAWARE 1-10145 95-4160558
(STATE OR OTHER JURISDICTION (COMMISSION (IRS EMPLOYER
OF INCORPORATION) FILE NUMBER) IDENTIFICATION NO.)
1221 MCKINNEY STREET, SUITE 1600, HOUSTON, TEXAS 77010
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE (713) 652-7200
NOT APPLICABLE
(FORMER NAME OR FORMER ADDRESS, IF CHANGED SINCE LAST REPORT)
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ITEM 5. OTHER EVENTS.
On July 29, 1996, the Company issued a press release describing the
shutdown of its Channelview, Texas petrochemical facility due to a fire in a
pipeline owned and operated by ARCO Pipe Line Company. The press release
indicates that it could be two to four weeks before full operations at the
Channelview facility is resumed. In a teleconference with analysts on July 29,
the Company's management discussed in broad terms the potential financial impact
of the event. Although the Company and ARCO Pipe Line are still evaluating the
extent of the damage to their respective facilities and developing schedules for
resumption of operations, Lyondell believes that the physical damage to the two
companies' facilities on Lyondell's plant site could be in the $10-20 million
range, and that the potential impact on Lyondell's earnings could be in the $12-
24 million range. A number of factors, including the full extent of the damage
to all the facilities, the availability of repair materials and the Company's
ability to find alternatives to meet customer needs, will impact the Company's
ability to resume full operations within the estimated timeframe and to mitigate
the financial impact on the Company's business. In addition, the numbers
contained herein are based on very preliminary information and do not take into
account the potential effects of any insurance coverage or contributions to
costs by other parties that may be available to offset such costs.
The statements in this Form 8-K are forward-looking statements that
involve risks and uncertainties and the factors described herein could cause
actual results to differ materially from the estimates contained herein.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) The following exhibit is filed with this report:
Press Release dated as of July 29, 1996.
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EXHIBIT INDEX
Exhibit Number Document
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99. Press Release Dated as of July 29, 1996.
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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 hereunto duly authorized.
Dated: July 29, 1996 LYONDELL PETROCHEMICAL COMPANY
By: /s/ JOSEPH M. PUTZ
_____________________________
Joseph M. Putz
Vice President and Controller
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EXHIBIT 99
[LYONDELL LETTERHEAD APPEARS HERE]
FOR IMMEDIATE RELEASE
LYONDELL'S CHANNELVIEW FACILITY
SHUT DOWN DUE TO PIPELINE FIRE
HOUSTON, July 29, 1996 -- Lyondell Petrochemical Company shut down its
Channelview Petrochemical Complex near Houston on Saturday, July 27, as a result
of a fire in a pipeline owned and operated by ARCO Pipe Line Company. While no
one was injured and no operating units at Lyondell's Channelview facility were
directly involved in the fire, it caused extensive damage to pipeline and plant
electrical systems, forcing the shutdown of all production units at the
Channelview site.
ARCO Pipe Line and Lyondell are analyzing the cause and extent of the
damage. Preliminary indications are that it could be two to four weeks before
full production can resume at Channelview. Lyondell currently is working to
minimize the impact on customers. While it is too early to quantify the full
impact of this event, it could have a significant impact on Lyondell's third
quarter results.
Major products produced at Lyondell's Channelview facility include
olefins (ethylene, propylene and co-products), methanol, MTBE, and aromatics
(benzene and toluene).
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For information, contact:
Media - Jackie Wilson (713) 652-4596
Investors - Kevin DeNicola (713) 652-4590
