News Release
Dec. 04, 1998

MARITIMES & NORTHEAST PIPELINE RECEIVE KEY APPROVALS

BOSTON — Maritimes & Northeast Pipeline, L.L.C. this week received two more key approvals required under federal law to construct Phase II of the natural gas pipeline project from Westbrook, Maine to Baileyville, Maine. On December 1, the United States Army Corps of Engineers issued permits to Maritimes under Section 10 of the Rivers and Harbors Act of 1899 regulating construction in navigable waterways and under Section 404 of the Clean Water Act. Additionally on November 30, the State of Maine Planning Office issued a consistency statement under the federal Coastal Zone Management Act (CZM).

In July, Maritimes received a certificate of public convenience and necessity for Phase II from the Federal Energy Regulatory Commission (FERC). That order was reaffirmed by FERC in October after considering several requests for rehearing. In October, Maine’s Board of Environmental Protection and Land Use Regulation Commission also issued permits for the project.

"With virtually all our approvals in hand, Maritimes is poised to bring natural gas to Maine and the Northeast by November 1999. We are pleased at the timely issuance of the Army Corps permit and the CZM consistency statement and plan to begin construction of several directionally drilled river crossings on schedule this winter," said George Mazanec, chairman of the Management Committee of Maritimes & Northeast Pipeline, L.L.C.

When fully operational, Maritimes and its Canadian affiliate will transport more than 530,000 MMBtu/day of natural gas from the Sable Offshore Energy Project, a new natural gas supply basin located off the coast of Nova Scotia, to markets in Atlantic Canada and the Northeastern United States.

"These approvals bring Maritimes one step closer to delivering a new, cost-effective and reliable supply of natural gas to Maine and the Northeast. The project continues to move forward due in large part to the tremendous support we have received in this region," said Tom O’Connor, president of M&N Management Company, managing member of Maritimes.

Maritimes is owned by affiliates of Duke Energy (37.5 percent), Westcoast Energy Inc. (37.5 percent) and Mobil Corporation (25 percent). Duke Energy, through its affiliates, is responsible for the overall development of the $1 billion Maritimes & Northeast Project and directly responsible for the U.S. portion of the project. Westcoast Energy Inc., a major energy company located in Vancouver, British Columbia, is responsible for the development of the Canadian pipeline portion of the project. Contact Maritimes & Northeast on the World Wide Web at http://www.mnp-usa.com.

Duke Energy (NYSE:DUK) is a global energy company with more than $24 billion in assets. Duke Energy companies provide electric service to approximately 2 million customers; operate pipelines that deliver 12 percent of the natural gas consumed in the United States; and are leading marketers of electricity, natural gas and natural gas liquids. Globally the companies develop, own and operate energy facilities and provide engineering, management, operating and environmental services. Contact Duke Energy on the World Wide Web at http://www.duke-energy.com.

Contact: Brian Prenda
Phone: 617/560-1450
24 Hour Phone: 704/382-8333
Email: media_relations@duke-energy.com