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UNITED STATES
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):
February 9, 1994
TEXACO INC.
(Exact name of registrant as specified in its charter)
Delaware 1-27 74-1383447
(State or other jurisdiction of (Commission File (I.R.S.Employer
incorporation) Number) Identification Number)
2000 Westchester Avenue, 10650
White Plains, New York (Zip Code)
(Address of principal executive offices)
(914) 253-4000
(Registrant's telephone number, including area code)
Item 5. Other Events
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On February 9, 1994, Texaco Inc. and the State of Louisiana (State)
announced that they had agreed to an out-of-court global settlement
ending a long-standing royalty dispute. Texaco will pay the State
$250 million over a three year period: $150 million five days after
the settlement is formally approved by the U.S. District Court for the
Middle District of Louisiana (Federal District Court), and two $50
million payments over the next two years.
Texaco and the State will also exchange comprehensive releases of all
pending and related claims, including all of the State's claims against
Texaco for alleged underpayment of royalties on State gas and oil leases,
and Texaco will embark on an economic expansion program in which it will
cause $152 million to be spent over the next five years on expanded
activity and investment affecting State-owned oil and gas properties.
The global settlement has received preliminary approval by the State
Mineral Board of Louisiana and will be subject to a public comment period,
after which it will be considered for final approval by the Board on
February 22, 1994. After final approval by the Board, it will then be
presented to the Federal District Court for a ruling on fairness. The
settlement will be final upon approval by the Federal District Court.
Item 7. Financial Statement, Pro Forma Financial Information and Exhibits
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(c) Exhibits
99.1 Copy of press release issued by Texaco Inc., dated February 9,
1994, entitled "Texaco Inc. and State of Louisiana Settle
Long-Standing Royalty Suit."
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.
TEXACO INC.
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(Registrant)
By: /S/R. E. KOCH
--------------------
R. E. KOCH
(Assistant Secretary)
Date: February 10, 1994
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EXHIBIT 99.1
TEXACO INC. AND STATE OF LOUISIANA
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SETTLE LONG-STANDING ROYALTY SUIT
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Agreement Means More Jobs And Drilling
For State's Hard Hit Petroleum Industry
FOR IMMEDIATE RELEASE: WEDNESDAY, FEBRUARY 9, 1994.
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NEW ORLEANS, LA., Feb. 9 - Texaco Inc. announced
today that it has agreed to an out-of-court global settlement
ending a long-standing royalty dispute with the state of
Louisiana. The settlement calls for Texaco to pay the state of
Louisiana $250 million over a three year period -- $150 million
five days after the settlement is formally approved by the
Federal District Court, with two $50 million payments over the
next two years.
As part of the settlement, Texaco will embark on an economic
expansion program in Louisiana, in which the company will cause
some $152 million to be spent over the next five years on
expanded activity and investment affecting state-owned oil and
gas properties.
Also, under the terms of the global settlement, the parties
will exchange comprehensive releases of all pending and related
claims, including all of the state of Louisiana's claims against
Texaco for alleged underpayment of royalties on State gas leases
and interest totalling some $1.1 billion.
"We are pleased that the differences which led to this
protracted dispute have been successfully resolved to the
satisfaction of the state and Texaco," said Texaco Inc. Chairman
of the Board and Chief Executive Officer Alfred C. DeCrane, Jr.
"Texaco and the state of Louisiana historically have had a
mutually rewarding relationship," he continued. "The terms of
this settlement affirm our desire to continue to be a business
partner and strong supporter of economic development in
Louisiana."
DeCrane noted that Louisiana's benefits from Texaco's
economic expansion program will have a cascading impact well
beyond the direct expenditures. The economic expansion
program will commit risk capital and state-of-the-art, leading
edge, proprietary technology to a variety of drilling projects
and 3-D seismic surveys, CO2 supported enhanced recovery
efforts and multiple workover activities across South Louisiana.
- more -
"This aggressive program will provide substantial benefits
to the state and to Texaco and should provide a further boost to
Louisiana's continued economic recovery," DeCrane said.
Highlights of Texaco's economic expansion program include:
o Independent economists have estimated the investment program
would yield incremental gross revenues to the state's
economy of almost $300 million from 1994-1998, and provide
direct contributions to state revenues through royalties,
severance and sales taxes totalling about $65 million over
this period. This enhancement is expected to continue well
beyond 1998.
o The economists estimate the capital spending for this part
of the economic expansion program is expected to create
about 500 jobs per year, directly and indirectly, throughout
the state.
o Additionally, a pilot CO2 project is planned for the Garden
Island Bay Field near the mouth of the Mississippi River
utilizing sophisticated 3-D seismic surveys and patented CO2
Enhanced Oil Recovery (EOR) technologies. If the pilot
project is successful, there are other fields in South
Louisiana which should be responsive to these procedures.
Following today's preliminary approval of the global
settlement by the State Mineral Board, the settlement will be
subject to a public comment period, after which it will be
considered for final approval by the Board on February 22. It
then will be presented to Judge John V. Parker of the U.S.
District Court for the Middle District of Louisiana for a
ruling on fairness. The settlement will be final when Judge
Parker approves it.
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CONTACTS: David J. Dickson Pierre DeGruy
Texaco Inc. Texaco Public & Government Affairs
New York New Orleans
914-253-4128 504-593-4159