Report Volume XXI, Number 24, August 15th, 2010

INDUSTRY NEWS (Richmond, VA) — Dominion Transmission and Tennessee Gas Pipeline Co. have reached a 10-year lease agreement to move Marcellus shale natural gas from northern Pennsylvania to upstate New York. Dominion Transmission’s parent, Dominion, announced the agreement with Houston-based Tennessee recently. Richmond-based Dominion says the Ellisburg- to-Craigs project includes construction of additional compression facilities and new regulating facilities. If federal regulators approve the project, construction would begin in March 2012 and operations would begin Nov. 1, 2012. Dominion says it plans to file in December for a certificate from the Federal Energy Regulatory Commission.

INDUSTRY NEWS (Houston, TX) – El Paso Corporation announced recently that its subsidiary, El Paso Midstream Group, Inc., is holding a 30-day, non-binding open season to solicit expressions of interest concerning the transportation of ethane on its proposed Marcellus Ethane Pipeline System (MEPS). The open season began August 9 and will close September 10. Subject to receipt of sufficient customer interest in the non-binding open season, MEPS plans to pursue with interested parties negotiation of terms to be contained in transportation agreements and, thereafter, conduct a binding open season in October 2010.

The proposed MEPS would be designed to transport up to 60,000 barrels per day of ethane from points of origin at the fractionation plants in the ethane-rich Marcellus Shale production region to destination interconnect points with third-party ethane pipelines and storage facilities in the Baton Rouge, Louisiana area. MEPS would be comprised of a combination of new pipeline and existing pipeline segments expected to be acquired from Tennessee Gas Pipeline Company and converted to ethane service. The project has a targeted in-service date of April 1, 2013.

INDUSTRY NEWS (Dallas, TX) – Driver Pipeline, one of the country’s most successful pipeline construction companies, headquartered in Dallas, Texas, announced that pipeline veteran Steve Daigle has joined the company as head of business development and customer relations for the Gulf Coast region. According to Jim Shaffer, President of Driver Pipeline, Daigle will focus on supporting existing customers and the Company’s rapidly growing list of new customers in the Houston/Gulf Coast area.

In making the announcement, Shaffer stated that, “Steve Daigle is very experienced and respected. He knows the region, the companies, and the people, as well as the intricacies of doing business in the Gulf Coast, and we are really happy that Steve has decided to join the Driver Pipeline family.”

When asked about joining Driver Pipeline, Daigle responded, “I’ve been in the pipeline industry for some time now and its not everyday one gets an opportunity to work for a company like Driver Pipeline, where it’s all about the customers. So when Driver approached me to come on board, it wasn’t a difficult decision for me to make. I’m very excited about this opportunity. They are a great bunch of folks and I look forward to working with each and every one of them.”

Originally from Opelousas, Louisiana, educated in Texas, Mr. Daigle now resides in the Houston Area. He is well known and respected in the energy business throughout the gulf coast region. His experience includes position as pipeline general foreman, project manager and vice president of sales.

Mr. Daigle will be working out of Driver’s Pearland, TX office, just south of Houston, and will concentrate on new business opportunities in the Gulf Coast and the Eagle Ford Shale area south of San Antonio.

About the Company – Driver Pipeline is an integrated oil and gas pipeline contractor, dedicated to fulfilling the energy industry’s construction, maintenance and repair needs since 1971. With more than 700 employees, the Company’s reach extends from the Atlantic Coast to beyond the Rocky Mountains and from South Texas to Maryland.

INDUSTRY NEWS (Dover, DE) —Eastern Shore Natural Gas Company which transports natural gas to customers in Delaware, Maryland and Pennsylvania has a plan to construct a 16-inch diameter pipeline about 8.3 miles through Lancaster and Chester counties.

The new pipeline through West Sadsbury and Salisbury townships will extend Eastern Shore’s pipeline from Parkesburg to a point west of Honeybrook Borough. Once built it will enable Eastern Shore to transport natural gas from Texas Eastern Transmission LP.

The reason for the expansion, is increased demand for natural gas, said Glen DiEleuterio, a projects manager engineer with Eastern Shore in an interview Monday. Currently, Eastern Shore receives natural gas from two major interstate pipeline systems — Transcontinental Gas Pipeline Corporation and Columbia Gas Transmission Company.

Eastern Shore has an application before the Federal Energy Regulatory Commission for the project and an environmental assessment has been done.