News Release
March 22, 1999


DENVER - - Duke Energy Field Services, Inc., in a restructuring of a previously announced deal, has agreed to buy the South Texas natural gas gathering, treating and processing systems of Koch Midstream Gathering and Processing Company, for an undisclosed amount. This transaction is expected to close March 31.

Duke Energy and Koch announced in July an asset exchange between the two companies which involved a swap of natural gas gathering and processing systems located in Texas, Mississippi, New Mexico, Alabama and Oklahoma.

Changing market conditions and Federal Trade Commission divestiture requirements resulted in this change of the original agreement.

Duke Energy will acquire Koch’s gas gathering, treating and processing assets in South Texas which include over 1,000 miles of pipe spanning 10 counties and two cryogenic processing plants named Three Rivers and Pettus as well as a small treating facility in Dewitt County.

"These assets are located in the prolific South Texas area and are an excellent extension of our existing system," said Jim Mogg, president. "The company is finalizing the pipeline tie-ins to our new 200 million cubic feet per day cryogenic Wilcox plant, and we will utilize this new plant to process some of the existing gas on these newly acquired pipeline assets."

Koch Midstream Gathering and Processing is a subsidiary of Wichita, Kansas-based Koch Industries, Inc. Koch Industries and its subsidiaries employ 16,000 people worldwide and are involved in virtually all phases of the oil and gas industry, as well as in agriculture, chemicals, environmental technology products, energy services, asphalt products, metals and minerals services, real estate and financial investments. For more information on Koch, refer to Koch’s home page at on the Internet.

Duke Energy Field Services, Inc. gathers and processes natural gas and is the nation’s fourth largest producer and a leading marketer of natural gas liquids. The company also provides intrastate natural gas transportation and storage, and financial services for producers.

Duke Energy (NYSE:DUK) is a global energy company with more than $26 billion in assets. Headquartered in Charlotte, N.C., the company reaches into more than 50 countries, producing energy, transporting energy, marketing energy and providing energy services. In the United States, Duke Energy companies provide electric service to approximately two million customers in North Carolina and South Carolina; operate interstate pipelines that deliver natural gas to various regions of the country; and are leading marketers of electricity, natural gas and natural gas liquids. Additional information about the company is available on the Internet at:

Contact: John P. Barnett
Phone: (704) 373-6668
24 Hour Phone: (704) 382-8333
Contact: Mary Beth Jarvis
Phone: (316) 828-3756
24 Hour Phone: (704) 382-8333