Report Volume XXI, Number 20, June 15th, 2010

INDUSTRY NEWS (Dallas, TX) – Energy Transfer Partners, L.P. announced recently the construction of a 63-mile natural gas pipeline that will provide its customers additional transportation, gathering, and treating services in the rapidly expanding Haynesville Shale in East Texas.

The pipeline project, which will originate in southeast Shelby County, Texas, traverse San Augustine County and terminate in Nacogdoches County, Texas, will consist of predominately 20- and 24-inch pipe and will have an initial capacity of 645 million cubic feet per day. The pipeline is supported by natural gas production from multiple 10-year agreements that encompass approximately 264,000 acres in the East Texas area.

The pipeline will interconnect with two interstate pipelines in addition to the Partnership’s Houston Pipeline System, which provides producers the optionality to access numerous other interstate and intrastate markets including the Carthage, Waha, Katy and Houston Ship Channel hubs in Texas. Partial service is expected to begin on the pipeline in the third quarter of this year and the full in-service date is expected to be in the fourth quarter 2010.

“This project shows our continued emphasis on developing organic growth projects and providing producers unparalleled access to markets throughout the country,” said Energy Transfer Partners’ Tim Dahlstrom, Senior Vice-President. “Our partnership is excited about this new opportunity to expand our pipeline network into a rapidly growing area of James Lime, Bossier and Haynesville production.”

INDUSTRY NEWS (Conroe, TX) – Environmental Crossings Inc. (ECI) announced June 3rd, that long time Shareholder Bruce Brasher has purchased all of the outstanding shares and has assumed the position of President. Greg Charney of Lone Star Investments Corp, The Woodlands, TX, was advisor on this transaction and sourced the needed financing.

ECI has been in the mid to large diameter horizontal directional drilling (HDD) industry for 18+ years. To date, ECI has installed over 326,000 linear feet of all types of product lines up to 42″ in diameter with many over the length of 5,000 feet. Work has been conducted all over the United States, Asia & Canada in all soil conditions including some of the hardest rock formations. ECI is known and used across many different industries, has rigs up to 1.2 million in pull back and has done as many or more sub-sea ocean landing than any other HDD Contractor. “We are certainly not the biggest HDD Contractor in the industry but there is no better talent, and our job completion and safety record is tops in the industry” says Mr. Brasher. All field operations will continue to be headed up by Steve Meaders, VP Operations. Steve is a long time HDD veteran and started his drilling career with Reading & Bates back in 1979 and is well known & respected throughout the industry. No major changes are expected in the ECI operations and our Clients can expect the same dependable service we have been providing for years.

The only notable change is that ECI plans to shut down its Michigan offices and consolidate all operations to the Conroe, TX offices located at 1306, N. FM 3083, Conroe, TX 77303-1827, Main Office (936) 441-9080, www.ecihdd.com.

For additional information, please contact Greg Charney (281)- 923-2733 or Bruce Brasher (936) 441-9080.

INDUSTRY NEWS (Houston, TX) – Pipeline operators Mark- West Energy Partners LP and Sunoco Logistics Partners L.P. have teamed up to build a distribution system to transport ethane produced in the Marcellus Shale Basin to markets along the Gulf Coast.

Known as the ‘Mariner Project’, the initiative is expected to begin service by the second quarter of 2012. It will initially ship up to 50,000 barrels of ethane per day to Gulf Coast markets that may be increased to support additional ethane production in the Marcellus region. The Mariner Project is supported by key producers including Range Resources Corporation and Chesapeake Energy Corporation.

MarkWest, through its majority- owned joint venture Mark- West Liberty Midstream & Resources, has been working since late 2009 to construct and operate natural gas midstream services to support producers in the emerging Marcellus Shale play in western Pennsylvania and West Virginia.

MarkWest runs a fractionalization complex in Houston, Pennsylvania, where gas gathered from Marcellus wells is processed and sent to storage facilities or pipelines. For the Mariner Project, MarkWest Liberty will be required to make minor adjustments to its processing facility to recover sufficient ethane (the primary constituent in ethylene) to allow the residue gas to meet interstate gas pipeline specifications. Mark- West Liberty will also install additional facilities at its processing and fractionation complex to separate the ethane for delivery to downstream Mariner Project facilities.

Additionally, MarkWest Liberty will build a 45-mile pipeline from its Houston complex to an interconnection with an existing Sunoco Logistics pipeline at Delmont, Pennsylvania. The ethane will be piped to an existing East Coast facility where Sunoco Logistics will construct refrigerated ethane storage facilities. Subsequently, the ethane will be transported through a marine vessel to premium markets in the Gulf Coast. Some of the natural gas liquid may be transported to markets in the northeast, providing multiple ethane blending options in the process.

We believe that the Mariner Project will provide an efficient solution for producers to move ethane across Pennsylvania to a Delaware River marine port to access multiple markets, while taking advantage of MarkWest Liberty’s extensive experience in the highly prospective Marcellus Shale play. MarkWest Liberty is the largest provider of midstream services in the region and is investing a significant amount of capital to provide infrastructure that will be required for the development of the Marcellus Shale leaseholds.