-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Cyym7T+ZMRyFIHKpcITy4Mf/UdeyaMaHa/+LLzoSgO2fTdPp1qhhzEZjSqC4EFay vUgddjN45rSCqV/f9x66ZQ== /in/edgar/work/20000913/0001028269-00-000111/0001028269-00-000111.txt : 20000922 0001028269-00-000111.hdr.sgml : 20000922 ACCESSION NUMBER: 0001028269-00-000111 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20000912 ITEM INFORMATION: FILED AS OF DATE: 20000913 FILER: COMPANY DATA: COMPANY CONFORMED NAME: US ENERGY CORP CENTRAL INDEX KEY: 0000101594 STANDARD INDUSTRIAL CLASSIFICATION: [1000 ] IRS NUMBER: 830205516 STATE OF INCORPORATION: WY FISCAL YEAR END: 0531 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 000-06814 FILM NUMBER: 721790 BUSINESS ADDRESS: STREET 1: 877 NORTH 8TH WEST STREET 2: GLEN L LARSEN BLDG CITY: RIVERTON STATE: WY ZIP: 82501 BUSINESS PHONE: 3078569271 MAIL ADDRESS: STREET 1: 877 NORTH 8TH WEST CITY: RIVERTON STATE: WY ZIP: 82501 FORMER COMPANY: FORMER CONFORMED NAME: WESTERN STATES MINING INC DATE OF NAME CHANGE: 19851229 8-K 1 0001.txt KENNECOTT SETTLEMENT SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 and 15(d) of the Securities Exchange Act of 1934 Date of Report (date of earliest event reported): September 11, 2000 U.S. ENERGY CORP. - -------------------------------------------------------------------------------- Exact Name of Registrant as Specified in its Charter) Wyoming 0-6814 83-0205516 - ---------------------------- ----------- ------------------- (State or other jurisdiction (Commission (I.R.S. Employer of incorporation) File No.) Identification No.) 877 North 8th West Riverton, WY 82501 - ---------------------------------------- ------------------- (Address of Principal Executive Offices) (Zip Code) Registrant's telephone number, including area code: (307) 856-9271 Not Applicable - -------------------------------------------------------------------------------- (Former Name, Former Address or Former Fiscal Year, if Changed From Last Report) 1 Item 5. Other Events (Settlement of Litigation with Kennecott Uranium Company and Kennecott Energy Company). This Form 8-K Report contains "forward-looking" statements which include use of the words "will" and "closing" and similar words. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 which amended section 21 E of the Securities Exchange Act of 1934. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Settlement of Litigation with Kennecott Background. U.S. Energy Corp. ("USE" or the "Registrant") and its affiliate the USECC joint venture ("USECC") consisting of USE and its subsidiary Crested Corp. ("Crested") together owned approximately 50% of the Green Mountain Mining Venture (the "GMMV"), a Wyoming joint venture partnership formed in June 1990, which owns the Green Mountain unpatented uranium claims in south-central Wyoming, the Jackpot Mine and support facilities (the mine is in the development stage) and the Sweetwater Mill (a uranium mill currently on standby located about 20 miles south of the Jackpot Mine). In the context of the GMMV and in this report, the term "USE Parties" means USE, Crested and USECC. Kennecott Uranium Company ("Kennecott") owns approximately 50% of the GMMV. KUC is a 100% subsidiary of Kennecott Energy Company ("KEC"), and KEC is a 100% subsidiary of Rio Tinto plc, one of the largest mining companies in the world. Differences arose between the GMMV partners on the operations of the GMMV and on November 10, 1999, Kennecott and KEC filed a complaint in a Wyoming district court against the USE Parties. Kennecott and KEC were seeking dissolution of the GMMV and a judicial plan of liquidation by which they would try to sell their interest in the GMMV. The USE Parties filed an answer and counterclaims against Kennecott and KEC and a cross complaint against Kennecott's parent Rio Tinto plc. Thereafter, the parties entered into negotiations to settle the lawsuit On September 11, 2000, the parties executed a settlement agreement and related documentation and releases (the "Settlement"). Under the Settlement, the USE Parties will sell all of their interests in the GMMV and the GMMV 2 properties, including those within a described Area of Interest to an affiliate of Kennecott. The purchase consideration is $3,250,000 in cash and a 4% net profits royalty interest in certain of the mining claims at the Big Eagle and Jackpot Mines. The USE Parties received various mining equipment and supplies, and have the right to receive certain mining claims that may be abandoned by Kennecott. Kennecott has posted reclamation bonds in the amount of $26,084,079 and agreed to assume all reclamation obligations (to the extent required by applicable regulatory authority) on the GMMV properties. SIGNATURES Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. U.S. ENERGY CORP. Dated: September 12, 2000 By: /s/ Max T. Evans ----------------------- Max T. Evans, Secretary 3 -----END PRIVACY-ENHANCED MESSAGE-----