<SEC-DOCUMENT>0000914317-13-000733.txt : 20130730
<SEC-HEADER>0000914317-13-000733.hdr.sgml : 20130730
<ACCEPTANCE-DATETIME>20130524111258
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0000914317-13-000733
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20130524

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			MIDDLESEX WATER CO
		CENTRAL INDEX KEY:			0000066004
		STANDARD INDUSTRIAL CLASSIFICATION:	WATER SUPPLY [4941]
		IRS NUMBER:				221114430
		STATE OF INCORPORATION:			NJ
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		1500 RONSON RD
		STREET 2:		P O BOX 1500
		CITY:			ISELIN
		STATE:			NJ
		ZIP:			08830
		BUSINESS PHONE:		7326341500

	MAIL ADDRESS:	
		STREET 1:		1500 RONON ROAD
		CITY:			ISELIN
		STATE:			NJ
		ZIP:			08830
</SEC-HEADER>
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<TYPE>CORRESP
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right">May 24, 2013</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Electronic Delivery</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Mr. William H. Thompson</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Accounting Branch Chief</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">United States Securities and Exchange Commission</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Washington, DC 20549</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><B>Re:</B></TD><TD><B>Middlesex Water Company</B><BR>
<B>Form 10-K for the Fiscal Year Ended December 31, 2012 (the &ldquo;Form 10-K&rdquo;)</B><BR>
<B>Filed March 7, 2013</B><BR>
<BR>
<B>File No. 0-00422</B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Dear Mr. Thompson:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">This letter responds to your comment letter
dated May 14, 2013 and provides supplemental information with respect thereto.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Form 10-K for the Fiscal Year Ended December
31, 2012</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Note 6 &ndash; Capitalization, page 48,</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Long-term Debt, page 48</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">1.</TD><TD STYLE="text-align: justify">Please tell us whether you accounted for the November 2012 redemption and refinance transaction
as an extinguishment or as a modification. Also, please provide us with your analysis of the present value of the remaining cash
flows under the terms of the original debt instruments compared to the present value of the cash flows under the terms of the new
debt instruments. Refer to guidance in ASC 470-50-40.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify"><B>Response</B>: Middlesex Water
Company (the &ldquo;Company&rdquo;) repaid five series of long-term bonds (the &ldquo;Refinanced Bonds&rdquo;) held by existing
bond holders (&ldquo;Old Creditors&rdquo;) with proceeds from <U>three <B>new</B> series of bonds (&ldquo;New Bonds&rdquo;) issued
to <B>new</B> bond holders</U> (&ldquo;New Creditors&rdquo;). Bank of New York Mellon and U.S. Bank, National Association were
the trustees for the Refinanced Bonds and Deutsche Bank National Trust Company is the trustee for the New Bonds.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt 0.75in; text-align: justify">Per Accounting Standards Codification
(&ldquo;ASC&rdquo;) 470-50-05-2:<B> </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify"><I>&ldquo;This Subtopic also
provides guidance on whether an exchange of debt instruments with the same creditor constitutes an extinguishment
and whether a modification of a debt instrument should be accounted for in the same manner as an extinguishment.&rdquo;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify">The Company accounted for the transaction
as an extinguishment because the New Bonds were issued to a new pool of creditors. Accounting for extinguishments by regulated
entities such as the Company is discussed below. Since the New Bonds were issued to the New Creditors, and not the Old Creditors,
the guidance regarding &ldquo;modification&rdquo; in ASC 470-50-40 is not applicable.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in">ASC 470-50-40-1 states &ldquo;<FONT STYLE="font-family: Times New Roman, Times, Serif"><I>the
general guidance for the </I></FONT><I>extinguishment<FONT STYLE="font-family: Times New Roman, Times, Serif"> of liabilities
is contained in Subtopic <FONT STYLE="text-underline-style: none; color: windowtext">405-20</FONT> and defines </FONT>transactions
<FONT STYLE="font-family: Times New Roman, Times, Serif">that the debtor shall recognize as an </FONT>extinguishment<FONT STYLE="font-family: Times New Roman, Times, Serif">
of a liability.</FONT></I><FONT STYLE="font-family: Times New Roman, Times, Serif">&rdquo; Per ASC 405-20-40-1:</FONT><B>&nbsp;&nbsp;&nbsp;</B></P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0 0.75in"><I>&ldquo;A debtor shall derecognize a liability
if and only if it has been extinguished. A liability has been extinguished if either of the following conditions is met: </I></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 12pt; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 76.5pt"></TD><TD STYLE="width: 18pt"><I>a.</I></TD><TD STYLE="text-align: justify"><I>The debtor pays the creditor and is relieved of its obligation for the liability. Paying the
creditor includes the following: </I></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 12pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 103.5pt"></TD><TD STYLE="width: 18pt"><I>1.</I></TD><TD STYLE="text-align: justify"><I>Delivery of cash </I></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 12pt; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 103.5pt"></TD><TD STYLE="width: 18pt"><I>2.</I></TD><TD STYLE="text-align: justify"><I>Delivery of other financial assets </I></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 12pt; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 103.5pt"></TD><TD STYLE="width: 18pt"><I>3.</I></TD><TD STYLE="text-align: justify"><I>Delivery of goods or services </I></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 12pt; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 103.5pt"></TD><TD STYLE="width: 18pt"><I>4.</I></TD><TD STYLE="text-align: justify"><I>Reacquisition by the debtor of its outstanding debt securities whether the securities are cancelled
or held as so-called treasury bonds. </I></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 12pt; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 76.5pt"></TD><TD STYLE="width: 18pt"><I>b.</I></TD><TD STYLE="text-align: justify"><I>The debtor is legally released from being the primary obligor under the liability, either judicially
or by the creditor. For purposes of applying this Subtopic, a sale and related assumption effectively accomplish a legal release
if nonrecourse debt (such as certain mortgage loans) is assumed by a third party in conjunction with the sale of an asset that
serves as sole collateral for that debt.&rdquo; </I></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify">Upon repayment of the Refinanced
Bonds to the Old Creditors, the Company was legally released as the obligor by the Old Creditors. As such, the derecognition of
the liability for the Refinanced Bonds was appropriate under the guidance in <FONT STYLE="font: 10pt Times New Roman, Times, Serif">ASC
405-20-40-1.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 12pt 0.75in; text-align: justify">The Company is subject to
regulation in the states in which it operates and is required to maintain its accounts in accordance with regulatory authorities&rsquo;
rules and guidelines, which may differ from other authoritative accounting pronouncements. In those instances, the Company follows
the guidance provided in ASC 980, <I>Regulated </I>Operations (&ldquo;ASC 980&rdquo;). It should be noted that the reacquisition
price for the Refinanced Bonds was equal to the net carrying value of the Refinanced Bonds. As a regulated entity, under ASC 980-470-40-1
through 980-470-40-3 (<I>Regulated Operations-Debt)</I>, if there would have been a difference in the long-term debt&rsquo;s reacquisition
price as compared to its net carrying value:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify"><I>&ldquo;The difference between
the entity's net carrying amount of the extinguished debt and the reacquisition price may be amortized as an adjustment of interest
expense over some future period.&rdquo; </I></P>


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<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">2.</TD><TD STYLE="text-align: justify">We note your disclosure that the NJEIT deobligated principal payments of several series of SRF
long-term debt during each year presented. Please tell us how the deobligated principal payments are accounted for.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify"><B>Response: </B>Proceeds under
the NJEIT SRF loan program are deposited into a Company trust account (the &ldquo;Restricted Cash Account&rdquo;). The proceeds
may only be disbursed to the Company for expenditures for specifically identified construction project(s). Once a NJEIT SRF loan
transaction is closed, the Company records the following entry:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify">Dr. Restricted Cash &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$X,XXX,XXX</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify">Cr. Long-Term Debt&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$X,XXX,XXX</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify"><I>To record issuance of NJEIT SRF
long-term debt and deposit of proceeds into a restricted trust account.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify">As costs are incurred, the Company
submits requests for reimbursement from the Restricted Cash Account. When payments are received the Company records the following
entry:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify">Dr. Cash&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$XXX,XXX</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify">Cr. Restricted Cash&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $XXX,XXX</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify"><I>To record reimbursement from
NJEIT for costs incurred for covered construction project(s).</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify">In the event there are restricted
funds remaining in the Restricted Cash Account when the construction project is complete, the administrator for the NJEIT SRF loan
program can direct the return of the unused loan proceeds to the lender and designate which future debt service payments will be
deemed satisfied by the return of these unused proceeds.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify">In 2012 and 2011, the NJEIT deobligated
future payments on several series of SRF long-term debt (as disclosed as a &ldquo;Supplemental Disclosure of Non-Cash Activity&rdquo;
on the Statement of Cash Flows and in Note 6 of the Form 10-K). Upon notification of the deobligation by the NJEIT SRF loan program
administrator, the Company records the following entry:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify">Dr. Long-Term Debt&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$XXX,XXX</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify">Cr. Restricted Cash&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$XXX,XXX</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify"><I>To record return of unused proceeds
to the NJEIT SRF loan program and reduce the related NJEIT long-term debt for the deobligation.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify">It should be noted that payment
from the Restricted Cash Account is made to satisfy the NJEIT SRF long-term obligation and the Company is legally released as the
obligor for this obligation by the NJEIT. As such, derecognition of the SRF long-term obligation liability is appropriate under
the guidance in <FONT STYLE="font: 10pt Times New Roman, Times, Serif">ASC 405-20-40-1</FONT> noted above in the response to Question
1.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Fair Value of Financial Instruments, page 50</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">3.</TD><TD STYLE="text-align: justify">We note your disclosure that there was no quoted market price related to other long-term debt.
Please tell us and disclose in future filings why it is not practical to estimate the fair value of other long term debt using
other valuation techniques. Please refer to ASC 825-10-50-16.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify"><B>Response: </B>The Company believes
it is not practicable to estimate the fair value for certain of its debt since there is no quoted market price and <U>there is
not an active market for these series of long-term debt (i.e. these series of long-term debt are not traded)</U>. As such, the
other valuation techniques used would not indicate the fair value of this long-term debt. In future filings, the Company proposes
to expand on its disclosure for these series of long-term debt as follows (changes are in <B>bold</B>):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify"><I>For other long-term debt for which
there was no quoted market price and <B>there is not an active trading market</B>, it was not practicable to estimate their fair
value <B>(for details, including carrying value, interest rate and due date on these series of long-term debt, please refer to
those series noted as &ldquo;Amortizing Secured Note&rdquo; and &ldquo;State Revolving Trust Note&rdquo; on the Consolidated Statements
of Capital Stock and Long-Term Debt)</B>. </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As requested in your May 14, 2013 letter, we
confirm the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">the Company is responsible for the adequacy and accuracy of the disclosures in the filing;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">staff comments or changes to disclosures in response to staff comments do not foreclose the Commission
from taking any action with respect to the filings; and</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">the Company may not assert staff comments as a defense in any proceeding initiated by the Commission
or any person under the federal securities laws of the United States.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 2.5in; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">If there are further questions or if any clarification of the above
responses is needed, please feel free to contact the undersigned.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 50%; padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 50%; padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">Sincerely,</FONT></TD></TR>
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    <TD STYLE="padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
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    <TD STYLE="padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
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    <TD STYLE="padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
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    <TD STYLE="padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">/s/ A. Bruce O&rsquo;Connor</FONT></TD></TR>
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    <TD STYLE="padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">Vice President and Chief Financial Officer</FONT></TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Cc: Mr. Anthony W. Watson</P>



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