News Release
Jan. 04, 2000

MARITIMES & NORTHEAST PIPELINE RECEIVES SABLE GAS

BOSTON The Maritimes & Northeast Pipeline Project (Maritimes) today received delivery of the first natural gas produced from Sable Offshore Energy, Inc. (SOEI). Today’s delivery marks the first time in more than 20 years that a major new natural gas supply basin in North America has been brought to market.

The 650-mile Maritimes mainline will transport up to 530,000 MMBtu/day of SOEI natural gas to markets in Atlantic Canada and New England. SOEI is developing natural gas reserves in the Sable Island area, located approximately 120 miles off the coast of Nova Scotia, Canada. Maritimes and SOEI have invested more than $3 billion in developing and constructing natural gas facilities that will bring greater energy reliability, flexibility and price competition to the northeast U.S. and Atlantic Canada region.

In Canada, SOEI gas enters the Maritimes pipeline in Goldboro, Nova Scotia, and is transported by Maritimes for deliveries in Nova Scotia and New Brunswick. After crossing the Canadian/U.S. border, Maritimes traverses eastern, central and southern Maine, New Hampshire and Massachusetts where it interconnects with the existing North American pipeline grid in Dracut, Mass. The pipeline was placed into service on Dec. 1, 1999.

The U.S. portion of the pipeline from Baileyville, Maine, to Westbrook, Maine, and from Plaistow, N.H., to Dracut, Mass., was completed on schedule in just over five months. More than 3,000 people, including over 1,500 Maine residents, helped build the 205-milestretch of pipeline from Westbrook to Baileyville. During the five months of construction, Maritimes installed more than 57,000 tons of steel pipe in the ground and crossed more than 400 waterbodies and 150 roads.

"We constructed a pipeline safely and in compliance with all environmental permits and we completed it on schedule. We are proud that we met our commitments to the project sponsors as well as the people of Maine, New Hampshire and Massachusetts," said Tom O’Connor, president of M&N Management Company, managing member of Maritimes.

Recently, Coastal America, a Washington, D.C.-based organization seeking to protect the nation’s coastal resources, awarded Maritimes its 1999 Partnership Award for the company’s participation in the Penobscot Watershed Anadromous Fish Restoration program in Maine. Vice President Al Gore congratulated Maritimes in a letter to the program’s participants.

Maritimes is owned by affiliates of Duke Energy (37.5 percent), Westcoast Energy, Inc. (37.5 percent), ExxonMobil (12.5 percent) and Nova Scotia Power (12.5 percent).

Contact: John P. Sheridan
Phone: 617-560-1444
24 Hour Phone: 704-594-0681
Email: jpsheridan@duke-energy.com