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: September 20, 1996 BLACK HILLS CORPORATION State of South Dakota File Number 1-7978 IRS Number 46-0111677 625 Ninth Street Rapid City, South Dakota 57709 Registrant's telephone number (605) 348-1700 Item 5. OTHER EVENTS WYODAK RESOURCES DEVELOPMENT CROP., A SUBSIDIARY OF BLACK HILLS CORPORATION, AGREES TO PURCHASE CLOVIS POINT MINE PROPERTIES Black Hills Corporation ("Company") announced today that its subsidiary, Wyodak Resources Development Corp. ("Wyodak Resources"), has entered into an agreement to purchase a portion of the Clovis Point Mine properties from Kerr-McGee Coal Corporation, subject to the Bureau of Land Management's approval of a logical mining unit which will include the new reserves. The Clovis Point Mine properties are located adjacent to Wyodak Resources' current reserves in Campbell County, Wyoming, and consist of State of Wyoming and federal leased coal reserves and facilities that will allow unit train loadout capabilities. Wyodak Resources' current long-term coal contracts result in sufficient annual production that upon approval of the logical mining unit Wyodak Resources will be able to increase its federal and state leased coal reserves from approximately 173 million tons to 300 million tons. The purchase price for the acquisition consists of Wyodak Resources' obligation to assume the responsibility for the reclamation of an existing Clovis Point open pit and to pay Kerr-McGee overriding royalties if and when coal is produced from the acquired properties without any obligation of Wyodak Resources to mine the coal. Daniel P. Landguth, Chairman, President and Chief Executive Officer of the Company, said, "While the acquisition may give us some opportunities in the short run, we do not anticipate that this acquisition will result in increased coal sales until the market for coal improves. However, the acquisition, along with our long-term coal contracts, presented us an opportunity without any substantial payment of capital to hold increased reserves and, with unit train loadout capabilities, to be better able to acquire additional sales when market conditions allow. The combined reserves will allow the Company to operate more efficiently by having a more contiguous mine plan and by utilizing the existing Clovis Point open pit when Wyodak Resources operations move north of the interstate." Wyodak Resources will incur holding costs from this transaction in the $250,000 to $500,000 range, annually. 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. BLACK HILLS CORPORATION By /S/ ROXANN R. BASHAM Roxann R. Basham, Corporate Secretary/Treasurer Dated: September 20, 1996