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) July 5, 2001

                        SOUTHWESTERN ENERGY COMPANY
           (Exact name of registrant as specified in its charter)

               Arkansas             1 - 8246         71-0205415
      (State of incorporation     (Commission      (I.R.S. Employer
         or organization)          File Number)    Identification No.)

          2350 N. Sam Houston Pkwy. E., Suite 300, Houston, Texas 77032
          (Address of principal executive offices, including zip code)

                             (281) 618-4700
           (Registrant's telephone number, including area code)

                                 No Change
     (Former name, former address and former fiscal year; if changed
                            since last report)



Item 5.

Other Events

        The Registrant  recently  settled  litigation in a case filed in a state
        court in Franklin  County,  Arkansas in 1996 against the  Registrant and
        two of its  subsidiaries  related to  overriding  royalty  interests  on
        certain  Arkansas  oil and gas  properties.  In a Form 8-K filed in July
        1996,  the  Registrant  disclosed the lawsuit and that the plaintiff was
        seeking  "several  million"  dollars  in damages  for  failure to attach
        overrides dating back to 1939 to certain gas producing  properties.  The
        plaintiff  subsequently  expanded its claim alleging the underpayment of
        overriding  royalties  arising  from  contractual  arrangements  for the
        purchase and sale of natural gas between  subsidiaries of the Registrant
        dating back to 1978.

        This matter  went to a non-jury  trial as to the issue of  liability  in
        January  2000.  The court in this  matter  issued  Findings  of Fact and
        Conclusions  of Law  that  found  no fraud  was  committed  and that any
        overriding  royalty  interests  subject  to the  plaintiff's  claim  for
        additional  overriding royalties accrued after March 1, 1990. All claims
        prior to March 1, 1990 were  barred by the statute of  limitations.  The
        damages  phase  of the  trial  was  scheduled  for  June  2001  and  the
        Registrant  recently settled all outstanding  issues in the case through
        mediation.  The  Registrant  will  record a $2.0  million  charge in the
        second  quarter of 2001 related to the  settlement.  Also, in connection
        with the settlement, the Registrant purchased the plaintiff's overriding
        royalty interest in a group of the  Registrant's  Arkansas gas producing


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, thereunto duly authorized.

                                                  SOUTHWESTERN ENERGY COMPANY

DATE:    July 5, 2001                         BY:     /s/ GREG D. KERLEY
     ----------------------                      -----------------------------
                                                        Greg D. Kerley
                                                   Executive Vice President
                                                  and Chief Financial Officer

                                      - 2 -

Southwestern Energy Company
P.O. Box 1408
Fayetteville, AR 72702-1408

July 5, 2001

Securities and Exchange Commission
ATTN: Filing Desk, Stop 1-4
450 Fifth Street, N.W.
Washington, DC  20549-1004


Pursuant to  regulations  of the Securities and  Exchange  Commission, submitted
herewith for filing  on behalf of  Southwestern Energy Company is Form 8-K dated
July 5, 2001.

This filing is being  effected by direct  transmission to the Commission's EDGAR

Very truly yours,

Stan Wilson