News Release
Aug. 17, 2000


DENVER – Dauphin Island Gathering Partners (DIGP) announced the completion of two projects expanding natural gas service in the Gulf of Mexico. These projects significantly increase the partnership’s presence in the primary supply basin serving growing natural gas markets in the southeastern United States and Florida’s rapidly expanding electric generation market. DIGP is operated by PanEnergy Dauphin Island, LLC, a subsidiary of Duke Energy Field Services, LLC.

In July, DIGP began providing gathering and transportation service on a new lateral connecting four Coastal Oil & Gas Corporation Main Pass Area production blocks via the Main Pass 265 platform. Initial production of 25 million cubic feet per day is expected to increase to at least 70 million cubic feet per day by the fourth quarter as new wells are brought on line. The gas is delivered by DIGP to the Mobile Bay Processing Partners’ plant near Coden, Ala., for processing and redelivery to interstate markets.

Also this summer, DIGP began service to El Paso Production Company and Chevron U.S.A. Production Co. from Viosca Knoll Block 385. This block is connected to DIGP’s 24-inch pipeline delivering gas to the Mobile Bay Processing Partners’ plant and redelivering to interstate markets. Production is from the Carbonate Trend, an active exploration and production area with more than 100 blocks leased and/or under development.

"Completion of these two projects signifies DIGP’s continued commitment to expand its infrastructure in the Gulf of Mexico," said Brad Reese, vice president of Duke Energy Field Services. "DIGP’s system is strategically located to connect this burgeoning supply area to the rapidly developing Florida interstate projects."

Duke Energy Field Services, LLC, MCN Energy Group Inc. (NYSE:MCN), Coastal Dauphin Island Co., LLC., an affiliate of The Coastal Corporation (NYSE:CGP) and Dominion (NYSE:D) jointly own Dauphin Island Gathering Partners.

Duke Energy Field Services, headquartered in Denver, Colo., is one of the nation's largest natural gas gatherers, the largest producer of natural gas liquids (NGLs) and one of the largest NGL marketers. DEFS operates in 11 states and across five of the largest natural gas producing regions in North America. The company owns and operates 71 plants and 57,000 miles of pipeline, and its operating territory extends from western Canada to the Gulf Coast.

Contact: Phyllis Hammond
Phone: 303/605-1606
24 Hour Phone: 704/382-8333