Tuesday, September 19, 2000
Settlement reached in dispute over mining ventureRIVERTON, Wyo. (AP) - U.S. Energy and Crested Corp. reached a settlement with Kennecott Uranium Co. resolving disputes over the Green Mountain Mining Venture, one company official said.
"The companies are pleased to bring closure to this legal matter," said Keith Larsen, president of U.S. Energy Corp.
Under the terms of the settlement, all interest in the Green Mountain Mining Venture will be transferred to Kennecott, Larsen said.
U.S. Energy and USECC will receive $3.25 million in cash; a 4 percent net profits royalty interest on any future uranium production from certain Green Mountain Mining Venture properties; various mining equipment and inventories; and certain mining claims that Kennecott may abandon.
Kennecott has agreed to assume all reclamation liabilities on the Green Mountain properties, including the Sweetwater Uranium Mill.
The Green Mountain Mining Venture is a joint project of the companies that has been hurt by low uranium prices.
Larsen said U.S. Energy plans to invest the money it gets in the deal into the booming coal bed methane play.