UNITED STATES
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)
June 10, 2005 (June 6, 2005)
MDU RESOURCES GROUP, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 1-3480 41-0423660
(STATE OR OTHER JURISDICTION (COMMISSION (I.R.S. EMPLOYER
OF INCORPORATION) FILE NUMBER) IDENTIFICATION NO.)
Schuchart Building
918 East Divide Avenue
P.O. Box 5650
Bismarck, North Dakota 58506-5650
(Address of Principal Executive Offices)
(Zip Code)
Registrant's telephone number, including area code (701) 222-7900
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17
CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
ITEM 8.01 OTHER EVENTS
CONTINUING DEVELOPMENTS IN COALBED NATURAL GAS LITIGATION
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As previously disclosed, Fidelity Exploration & Production Company (Fidelity), a
subsidiary of MDU Resources Group, Inc. (Company), has been named as a defendant
in, and/or certain of its operations are or have been the subject of, more than
a dozen lawsuits filed in connection with its coalbed natural gas development in
the Powder River Basin in Montana and Wyoming. In one of the cases, the Federal
District Court for Montana, in February 2005, entered a ruling requiring the
Bureau of Land Management (BLM) to review and revise the Final Environmental
Impact Statement (FEIS) prepared in connection with coalbed natural gas
development in the Powder River Basin in Montana. The Federal District Court
later entered an order that would have allowed limited coalbed natural gas
production in the Powder River Basin in Montana pending the BLM's review and
revision of the FEIS. The plaintiffs, the Northern Plains Resource Council
(NPRC) and the Northern Cheyenne Tribe (Tribe), appealed the decision to the
United States Ninth Circuit Court of Appeals (Ninth Circuit). The Federal
District Court declined to enter an injunction requested by the NPRC and the
Tribe that would have enjoined production pending the appeal. In late May 2005,
the Ninth Circuit granted the request of the NPRC and the Tribe for a broader
injunction and enjoined the BLM from approving any coalbed natural gas
production projects in the Powder River Basin in Montana. That court also
enjoined Fidelity from drilling any additional wells in its Montana Coal Creek
Project and from constructing any infrastructure necessary to produce and
transport coalbed natural gas from the Coal Creek Project's existing wells.
In two other related actions filed by the NPRC and the Tribe in the Federal
District Court for Montana, these parties asserted (among other things) that the
actions of the BLM in approving Fidelity's applications for permits and the plan
of development for the Tongue River-Badger Hills Project in Montana (Badger
Hills Project) did not comply with applicable Federal laws, including the
National Historic Preservation Act (NHPA) and the National Environmental Policy
Act (NEPA). The NPRC also asserted that the Environmental Assessment that
supported the BLM's prior approval of the Badger Hills Project was invalid. On
June 6, 2005, the Montana Federal District Court issued orders in these cases
enjoining operations on Fidelity's Badger Hills Project pending the BLM's
consultation with the Tribe as to satisfaction of the applicable requirements of
NHPA and a further environmental analysis under NEPA.
Following the issuance by the Ninth Circuit of its injunction, Fidelity had
reassessed the potential impact upon its total estimated natural gas and oil
production for 2005 and had estimated that its total production would be
comparable to or slightly higher than production levels in 2004. In light of the
most recent actions of the Montana Federal District Court with respect to the
Badger Hills Project, Fidelity now expects its 2005 total production levels will
be slightly lower than 2004 levels.
Fidelity intends to take all necessary actions to contest the Ninth Circuit's
injunction and the most recent orders of the Montana Federal District Court. On
June 9, 2005, Fidelity filed a request with the Montana Federal District Court
for a temporary stay of its orders, which the Court granted.
REAFFIRMATION OF RECENT EARNINGS GUIDANCE
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On June 3, 2005, the Company reaffirmed its prior guidance that earnings per
common share, diluted, are projected in the range of $1.80 to $2.00. Despite the
potential negative implications for Fidelity's ongoing coalbed natural gas
operations in Montana, and in light of the Company's view that its overall
business outlook remains strong for the year, the Company reiterates its
expectation that earnings per common share, diluted, for 2005 will be within the
indicated range and does not expect any material change to the consolidated
earnings outlook for the year based on the diversified nature of the
corporation.
A related press release issued by the Company on June 9, 2005 is incorporated by
reference herein and is attached as Exhibit 99.
ITEM 9.01. FINANCIAL STATEMENT AND EXHIBITS.
(c) Exhibits
99 Press Release issued June 9, 2005, regarding continuing developments in
coalbed natural gas litigation and reaffirming recent earnings guidance.
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 hereunto duly authorized.
Dated: June 10, 2005
MDU RESOURCES GROUP, INC.
By:/s/ Warren L. Robinson
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Warren L. Robinson
Executive Vice President
and Chief Financial Officer
EXHIBIT INDEX
Exhibit Number Description of Exhibit
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99 Press release issued June 9,
2005, regarding continuing
developments in coalbed
natural gas litigation and
reaffirming recent earnings
guidance.