1
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) October 10, 1997
----------------
Piedmont Natural Gas Company, Inc.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
North Carolina 1-6196 56-0556998
- ---------------------------- ------------- -------------------
(State or Other Jurisdiction (Commission (I.R.S. Employer
of Incorporation) File Number) Identification No.)
1915 Rexford Road, Charlotte, North Carolina 28211
- -------------------------------------------- ----------
(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, Including Area Code (704) 364-3120
--------------
--------------------------------------------------------------
(Former Name or Former Address, if Changed Since Last Report.)
Page 1 of 2 pages
2
Item 5. Other Events
Environmental Matters
The Company previously reported that it has owned, leased or operated
manufactured gas plant (MGP) facilities at 11 sites in its three-state service
area and that eight of these sites involve other parties who either owned the
property or operated the facilities. Subsequent investigation has disclosed a
twelfth site. This site also involves other parties who either owned the
property or operated the facilities. On October 10, 1997, the Company entered
into a settlement with one of the third parties pursuant to which the Company
will pay the third party $5.25 million, and the third party will be responsible
for all costs of investigation, monitoring, assessment, evaluation, removal,
remedy or remedial action ("Response Costs") incurred at nine of the MGP sites
(including the newly discovered site) and will indemnify the Company from any
and all actions, causes of action, claims and demands arising out of or relating
to such Response Costs. The settlement does not cover any third party claims for
personal injury, death, property damage, diminution of property value or natural
resources. No such claims are pending or, to the knowledge of the Company,
threatened.
As previously reported, the Company is authorized by its three state regulatory
commissions to utilize deferral accounting, or the creation of a regulatory
asset, for expenditures made in connection with environmental matters. The
Company had previously established a liability and associated regulatory asset
of $4 million for future environmental costs. In October 1997, the Company
increased this liability and associated regulatory asset to $6.6 million to
account for the settlement relating to the nine sites.
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.
PIEDMONT NATURAL GAS COMPANY, INC.
----------------------------------
(Registrant)
By /s/ B. L. Guy
-------------
B. L. Guy
Vice President and Controller
(Principal Accounting Officer)
Date October 16, 1997
----------------
Page 2 of 2 pages