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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) - DECEMBER 23, 1998
NORTHWEST NATURAL GAS COMPANY
(Exact name of registrant as specified in its charter)
OREGON 0-994 93-0256722
(State or other (Commission (I.R.S. Employer
jurisdiction
of incorporation) File Number) Identification No.)
220 N.W. SECOND AVENUE, PORTLAND, OREGON 97209
(Address of principal executive offices) (Zip Code)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA
CODE - (503) 226-4211
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ITEM 5. OTHER EVENTS
Northwest Natural Gas Company, dba NW Natural, reported that
its 66 percent-owned Canadian subsidiary, Canor Energy Ltd., is
expected to record impairment charges and property write-downs
equivalent to about 6 cents a share for NW Natural in the quarter
ending Dec. 31, 1998. The Company also expects Canor to record
losses from continuing operations for the quarter equivalent to
about 2 cents a share. Canor's results have been depressed during
1998 by low oil prices, lower than expected gas and oil
production and unsuccessful drilling efforts.
The impairment charges result from the application of
Statement of Financial Accounting Standards (SFAS) No. 121,
"Accounting for the Impairment of Long-Lived Assets and for Long-
Lived Assets to Be Disposed Of," to Canor's gas and oil
properties in Alberta. The additional property write-downs are
due to determinations that some of Canor's wells are no longer
productive because of water encroachment. Canor uses "successful
efforts" accounting for its exploration efforts.
NW Natural also conducts impairment tests under SFAS No. 121
on the limited partner investments of its wholly-owned
subsidiary, NNG Financial Corporation, in solar electric, wind-
power electric and hydroelectric generation projects in
California. The Company believes it is probable that impairment
charges will be required in the fourth quarter relating to some
or all of these investments. Until these tests are conducted,
the Company will be unable to determine the extent of any such
impairment charges. Financial Corporation's book value for these
investments totaled about $21.7 million as of Nov. 30, 1998.
The impairment charges and write-downs in the fourth quarter
of 1998, to the extent the Company is required to recognize them,
will not have a material effect on next year's earnings.
NOTE: This report contains forward-looking statements
within the meaning of Section 21E of the Securities Exchange Act
of 1934, as amended. The Company's future operating results will
be affected by various uncertainties and risk factors, many of
which are beyond the Company's control, including governmental
policy and regulatory action, the competitive environment and
economic factors, as well as weather conditions. For a more
complete description of these uncertainties and risk factors, see
the Company's filings with the Securities and Exchange Commission
on Form 10-K for the year ended Dec. 31, 1997, and on Form 10-Q
for the quarters ended Mar. 31, Jun. 30, and Sep. 30, 1998.
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 thereunto duly authorized.
NORTHWEST NATURAL GAS COMPANY
By: /s/ Bruce R. DeBolt
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Name: Bruce R. DeBolt
Title: Senior Vice President
and Chief Financial
Officer
Date: December 23, 1998