Report Volume XXI, Number 6, November 15th, 2009

INDUSTRY NEWS (New Iberia, LA) – The Bayou Companies, Inc. (“Bayou”), a subsidiary of Insituform Technologies, Inc. announced recently the completion of its $12.25 million (CAN) acquisition of Garneau, Inc’s pipe coating and insulation facility and associated assets located in Camrose, Alberta Canada. The acquisition was effected through Bayou Perma-Pipe Canada, Ltd. (“BPPC”), a joint venture between Bayou and Perma-Pipe, Inc. (“Perma-Pipe”), and will serve as the operating company for Bayou’s Canadian operations.

Bayou announced its agreement to acquire the Camrose facility on September 30, 2009. The Garneau shareholder approved the transaction on October 28, 2009 and the closing occurred today. Bayou expects that this additional pipe coating and insulation facility in Western Canada will increase its addressable market by approximately $200 million.

Jerry Shea, Bayou’s Managing Director, Business Development, said, “We are confident our partnership with Perma-Pipe will add significant value to our customers in the Canadian energy and mining industry. Perma-Pipe is the leading manufacturer of preinsulated district heating and cooling piping systems in North America and will bring their expertise in pipe insulation to our operation.” Bayou, which was founded in 1942, provides pipe coating, fabrication and logistics capability and is headquartered in New Iberia, Louisiana. Mr. Shea also announced the appointment of Eldridge Indest as President of Bayou Perma-Pipe Canada. Mr. Indest brings his experience as a 32-year veteran with Bayou, most recently serving as Director of Technical Planning in Bayou’s New Iberia operations. Mr. Indest will be relocating to Camrose.

INDUSTRY NEWS (Houston, TX) – CRC-Evans Automatic Welding equipment is at work on a 29-mile section (Spread I) of the Rockies Express Pipeline project under construction in Ohio. Contractor Henkels & McCoy has specified the CRC-Evans P600 External Welder for the job.

The Rockies Express Pipeline East (REX-East) is a development of Kinder Morgan Energy Partners, Sempra Pipelines & Storage, and ConocoPhillips. The eastern portion of the pipeline will cross approximately 638 miles from Missouri to Ohio. Spread I is located between Muskingum County, Ohio and Fairfield County, Ohio, and the CRC-Evans P600 External Welder will be used on 3,518 welds from the start to end point on this section.

The P600 dual-torch system provides through-the-arc tracking, smart card programming, onboard data collection and touch screen control. It offers precise control of welding parameters such as voltage, wire feed speed, and travel speed. Its ergonomic design is smaller and lighter for less operator fatigue. CRC-Evans is the only company to offer full digital control in its automatic welding systems. All system components communicate digitally without the need for analog conversions.

Full in-service operation on REX-East to Clarington, Ohio is scheduled for November 1, 2009.

INDUSTRY NEWS (Houston, TX) – Kinder Morgan Energy Partners, LP and Copano Energy, LLC announced that they have entered into a letter of intent for a 50/50 joint venture to provide gathering, transportation and processing service to natural gas producers in the Eagle Ford Shale resource play in south Texas.

In its first phase, the joint venture will construct a roughly 22- mile, 24-inch natural gas gathering pipeline and will enter into new commercial arrangements with Kinder Morgan and Copano Energy. Originating in LaSalle County, Texas, and terminating in Duval County, Texas, the natural gas pipeline will have an initial capacity of 350 million cubic feet per day and is expected to be completed in mid-year 2010.

INDUSTRY NEWS (Houston, TX) – Enterprise Products Partners and Duncan Energy Partners announced plans to expand the Louisiana intrastate natural gas pipeline system.

The natural gas pipeline system, governed by the joint venture Acadian Gas LLC, will extend into northwest Louisiana to bring gas from Haynesville shale deposits to regional customers.

The Haynesville extension has a design capacity to deliver 1.4 billion cubic feet per day through a 249-mile pipeline connecting existing infrastructure to the affiliated Cypress gas pipeline.

Enterprise said the extension provides natural gas shippers advantages in terms of price while diversifying the gas sector in the south Louisiana market. For producers, the company said, the extension offers more options for transactions with their end users.

“The expansion of the Acadian system provides our partnership with another major foothold in a significant non-conventional natural gas producing area,” said Michael A. Creel, president and chief executive officer of Enterprise.

Enterprise said the service date for the pipeline is scheduled for September 2011.

INDUSTRY NEWS (Charlotte, NC) – Piedmont Natural Gas recently announced an agreement with Progress Energy Carolinas to provide natural gas delivery service to the electric utility’s recently announced state-ofthe- art power generation facility to be built at Progress Energy Carolinas’ Wayne County, N.C., energy complex. The plans call for Piedmont to construct 38-miles of 20-inch pipeline along with additional compression facilities to provide natural gas delivery service to the plant by July, 2012. Piedmont’s investment in the pipeline and compression facilities is estimated at $85 million and is supported by a long-term service agreement with Progress Energy Carolinas.

Progress Energy Carolinas announced its plan for the new power plant August 18. The plan includes retiring three existing coalfired units at the adjacent H.F. Lee Plant in Wayne County once the new gas-fueled units come online. Progress Energy Carolinas expects the new combined-cycle natural gas plant to increase the amount of electricity produced at the site while reducing overall emission rates for carbon dioxide by an estimated 60 percent, mercury rates by 100 percent, sulfur-dioxides by nearly 100 percent and nitrogen oxides by more than 95 percent.

Piedmont Natural Gas Chairman, President and CEO, Thomas E. Skains commented on the agreement, “We’re excited about this opportunity to work with Progress to deliver clean and efficient natural gas to their new power generation facility. In addition to the environmental benefits associated with using natural gas at this new plant, the construction of the natural gas pipeline for this project will also add to our natural gas infrastructure in the eastern part of North Carolina and enhance future opportunities for additional economic growth and development.”

Progress Energy Carolinas CEO and President, Lloyd Yates said, “We are pleased that our project is moving forward and that it will be the catalyst for extending natural gas supply more deeply into Eastern North Carolina. This is an important milestone for our customers and our company, as we bring a cleaner electricity generation technology to the region.”

INDUSTRY NEWS (Salt Lake City, UT) – A subsidiary of Questar Pipeline Co. is seeking federal approval for a natural gas pipeline across a stretch of southwest Wyoming that would tie into another pipeline destined to serve West Coast consumers.

Questar Overthrust Pipeline Co. wants to construct a line that would run 43 miles from a compressor station near Rock Springs west to Blacks Fork, Wyo., southeast of Opal, spokesman Steve Chapman said Friday.

The 36-inch pipeline would run alongside Interstate 80 for most of the way. It would parallel an existing Questar pipeline running from Wamsutter to Blacks Fork and on to Opal.

The new pipeline would feed natural gas into a line that Houstonbased El Paso Corp. hopes to build to serve northern California. The so-called Ruby pipeline would start in Opal, cross northern Utah and Nevada and terminate in Malin, Ore., There, it would connect with lines extending into California.

“California is a real large natural gas market. This pipeline that El Paso is building — they have commitments for approximately 1.1 billion cubic feet per day,” said Shelley Wright, director of business development for Salt Lake City-based Questar Pipeline. If the Federal Energy Regulatory Commission approves Questar’s application, construction could start next summer. The line could be ready in March 2011.