News Release
Dec. 14, 2000

DUKE ENERGY FIELD SERVICES COMPLETES COLORADO PLANT EXPANSION; EASES WELD COUNTY PROCESSING CONSTRAINTS

DENVER – Duke Energy Field Services (DEFS) announced today the completion of its much-anticipated expansion at the Roggen natural gas processing plant northeast of Denver, Colo., more than doubling its processing capacity to 58 million cubic feet per day (MMcf/d).

The upgrade increases producer capabilities to develop additional gas reserves in gas-rich Weld County, Colo., and eases natural gas processing constraints in the area. DEFS presently owns and operates six plants and more than 2,200 miles of gas gathering lines in the area.

"With natural gas and NGL prices near all-time highs, we are expecting producer development activity to continue at very high levels over the next few years," said Michael J. Bradley, senior vice president of DEFS’ Northern division. "We are already looking at several additional ‘bolt-on’ expansion projects to our facilities in the Denver-Julesburg (D-J) Basin in anticipation that even more capacity will be needed to meet the needs of our producer customers. At a time when natural gas demand is growing, we are helping meet the ever-increasing energy needs of our country."

The D-J Basin has been a tremendous growth area for DEFS with plant inlet volumes increasing from 160 MMcf/d one year ago to more than 186 MMcf/d today. Natural gas liquid (NGL) production has also increased from 12,600 barrels per day (BPD) to more than 14,600 BPD. The completion of the Roggen expansion will allow production growth in the D-J Basin to continue to help meet the rapidly increasing demand for natural gas and NGL products, adding incremental inlet capacity of approximately 30 MMcf/d and increased NGL production of approximately 2,200 BPD. This expansion represents DEFS’ second expansion in the area within the last 18 months.

The industry considered the D-J Basin to be a mature, extensively developed area with a declining production base as recently as five years ago. Producers active in the area have worked with the service industry to improve fracturing designs and well-stimulation techniques as well as other innovative ways to extract more oil and gas production from existing wellbores, resulting in a rebirth of reserve development activity in the D-J Basin.

"This expansion offers a much-needed solution to the processing constraints in the D-J Basin," said Jay Decker, president of Denver-based Patina Oil & Gas Corporation (NYSE:POG). "With this increased capacity Patina plans on increasing its development capital expenditures in 2001 by over 40 percent above the 2000 level."

DEFS was formed by combining the Duke Energy and Phillips Petroleum natural gas gathering and processing businesses. Duke Energy owns approximately 70 percent of the joint venture and Phillips Petroleum owns about 30 percent. More information is available about the company at www.defs.com.

DEFS, headquartered in Denver, Colo., is a midstream energy company that gathers, processes, transports, markets and stores natural gas and produces, transports and markets natural gas liquids (NGLs). The company is one of the nation’s largest natural gas gatherers, the largest producer of 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. DEFS also owns the general partner of TEPPCO Partners, L.P., a publicly traded master limited partnership.

Phillips is an integrated petroleum company engaged in oil and gas exploration and production worldwide; gas gathering, processing and marketing in the United States; refining, marketing and transportation operations primarily in the United States; chemicals and plastics manufacturing and sales around the globe; and technology development. Founded in Bartlesville, Okla., in 1917, Phillips had 15,900 employees and $15 billion of assets at the end of 1999, and $14 billion of revenues for the year.

Duke Energy, a diversified multinational energy company, creates value for customers and shareholders through an integrated network of energy assets and expertise. Duke Energy manages a dynamic portfolio of natural gas and electric supply, delivery and trading businesses -- generating revenues of nearly $22 billion in 1999. Duke Energy, headquartered in Charlotte, N.C., is a Fortune 100 company traded on the New York Stock Exchange under the symbol DUK. More information about the company is available on the Internet at: www.duke-energy.com.

Contact: Gail Schutz
Phone: 713/627-4060
24 Hour Phone: 704/382-8333
Email: gbschutz@duke-energy.com