
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: SATURDAY, August 27, 1994                   TAG: 9408300018
SECTION: BUSINESS                    PAGE: A-6   EDITION: METRO 
SOURCE: By GREG EDWARDS STAFF WRITER
DATELINE:                                 LENGTH: Short

WESTMORELAND CALLS OFF ENERGY GROUP'S SALE

Westmoreland Coal Co. said Friday that it has terminated negotiations for the sale of the assets of its Westmoreland Energy Inc. unit to a purchaser group led by LCRW Power Co.

Westmoreland and the group had entered into an agreement in April calling for negotiations for the sale of the assets of Westmoreland Energy for more than $50 million.

Difficulty in valuing the assets led to a decision to call off the transaction, said Westmoreland Coal President Christopher Seglem.

On July 28, Westmoreland Coal announced an agreement to sell its Kentucky Criterion Coal Co. to CONSOL of Kentucky Inc. for a cash price of roughly $85 million.

Part of that money will help meet the equity obligations of roughly $28 million in Westmoreland Energy projects.

Westmoreland Coal, headquartered in Philadelphia, has extensive coal-mining operations in Southwest Virginia.

by CNB