Equitable Resources said it reached a settlement with a Kentucky man who was awarded $270 million in punitive damages as a result of injuries received during a 2000 explosion.

The announcement by the Pittsburgh, PA-based energy company came after a Knott County (KY) Circuit Court judge last Monday vacated and set aside the punitive damage portion of the jury award. Equitable Resources said the case has been “satisfactorily resolved” by both sides, but it declined to disclose terms of the agreement.

On Oct. 17, a Knott County Circuit Court jury awarded Fairon Johnson $50,000 in medical expenses and lost wages, and $270 million for pain and suffering and punitive damages for injuries arising from the accident.

In his civil lawsuit, Johnson claimed the well-pump accident that injured him in June 2000 was triggered by the company’s natural gas well adjacent to his property. Named in the lawsuit was Equitable Resources’ subsidiary, Kentucky West Virginia Gas Co. LLC, which operates a gas gathering system and provides well-tending services for gas wells in Kentucky.

Equitable Resources said it was “substantially insured” for the settlement damages, and said they would not impact the company’s income statement beyond 2002 or its projected earnings estimate for 2002.

The company has forecasted it will achieve $2.35 to $2.40 in earnings per diluted share for the year.

Equitable Resources, a diversified energy company, is involved in natural gas production, pipeline transportation, distribution and energy management services throughout the nation, as well as in international energy projects.

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