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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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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 5, 2001
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SOUTHWESTERN ENERGY COMPANY
(Exact name of registrant as specified in its charter)
Arkansas 1 - 8246 71-0205415
(State of incorporation (Commission (I.R.S. Employer
or organization) File Number) Identification No.)
2350 N. Sam Houston Pkwy. E., Suite 300, Houston, Texas 77032
(Address of principal executive offices, including zip code)
(281) 618-4700
(Registrant's telephone number, including area code)
No Change
(Former name, former address and former fiscal year; if changed
since last report)
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Item 5.
Other Events
The Registrant recently settled litigation in a case filed in a state
court in Franklin County, Arkansas in 1996 against the Registrant and
two of its subsidiaries related to overriding royalty interests on
certain Arkansas oil and gas properties. In a Form 8-K filed in July
1996, the Registrant disclosed the lawsuit and that the plaintiff was
seeking "several million" dollars in damages for failure to attach
overrides dating back to 1939 to certain gas producing properties. The
plaintiff subsequently expanded its claim alleging the underpayment of
overriding royalties arising from contractual arrangements for the
purchase and sale of natural gas between subsidiaries of the Registrant
dating back to 1978.
This matter went to a non-jury trial as to the issue of liability in
January 2000. The court in this matter issued Findings of Fact and
Conclusions of Law that found no fraud was committed and that any
overriding royalty interests subject to the plaintiff's claim for
additional overriding royalties accrued after March 1, 1990. All claims
prior to March 1, 1990 were barred by the statute of limitations. The
damages phase of the trial was scheduled for June 2001 and the
Registrant recently settled all outstanding issues in the case through
mediation. The Registrant will record a $2.0 million charge in the
second quarter of 2001 related to the settlement. Also, in connection
with the settlement, the Registrant purchased the plaintiff's overriding
royalty interest in a group of the Registrant's Arkansas gas producing
properties.
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, thereunto duly authorized.
SOUTHWESTERN ENERGY COMPANY
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Registrant
DATE: July 5, 2001 BY: /s/ GREG D. KERLEY
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Greg D. Kerley
Executive Vice President
and Chief Financial Officer
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Southwestern Energy Company
P.O. Box 1408
Fayetteville, AR 72702-1408
July 5, 2001
Securities and Exchange Commission
ATTN: Filing Desk, Stop 1-4
450 Fifth Street, N.W.
Washington, DC 20549-1004
Gentlemen:
Pursuant to regulations of the Securities and Exchange Commission, submitted
herewith for filing on behalf of Southwestern Energy Company is Form 8-K dated
July 5, 2001.
This filing is being effected by direct transmission to the Commission's EDGAR
System.
Very truly yours,
Stan Wilson
Controller