News Release
May 13, 1998

DUKE ENERGY TRANSPORT AND TRADING COMPANY PURCHASES MESA PIPELINE COMPANY

HOUSTON - Duke Energy Transport and Trading Company recently purchased the assets and related marketing business of Mesa Pipe Line Company, a crude oil gathering and transportation company headquartered in Houston.

The assets include approximately 325 miles of pipeline for three Texas gathering systems located near Midland, Snyder and Centerville, plus associated trucking operations. These systems transport about 23,000 barrels of crude oil per day.

"The acquisition of Mesa Pipeline expands Duke Energy’s crude oil gathering assets into new areas where the company already is active in natural gas gathering," said Mike Cockrell, president. "In addition, this acquisition provides producers with stronger competitive transportation and marketing alternatives."

The acquisition continues Duke Energy’s strategy of acquiring and consolidating assets in the crude oil marketing and transportation industry. Duke Energy Transport and Trading now owns and operates approximately 2,300 miles of crude oil and natural gas liquids pipelines, transporting 106,000 barrels per day. In addition, the company now purchases and markets approximately 75,000 barrels per day of crude oil from the wellhead.

Duke Energy Transport and Trading Company, based in Oklahoma City, operates crude oil and natural gas liquids pipelines, and markets and trades crude oil.

Duke Energy Corporation (NYSE:DUK) is a global energy company with $20 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: John P. Barnett
Phone: 713/627-4072
24 Hour Phone: 704/382-8333
Email: media_relations@duke-energy.com