News Release
Jan. 12, 2001

CMS ENERGY’S FIELD SERVICES UNIT AND DUKE ENERGY FIELD SERVICES ACQUIRE CERTAIN ASSETS FROM EACH OTHER

TULSA, Okla., January 12, 2001 C CMS Energy Corporation’s (NYSE:CMS) CMS Field Services, Inc. unit and Duke Energy Field Services (DEFS) today announced that they have acquired certain assets from one another that increase the regional assets and services offered by both companies.

CMS Field Services acquired from DEFS certain natural gas gathering and condensate measuring and transportation assets onshore and offshore Louisiana, and DEFS acquired from CMS Field Services certain natural gas gathering assets located in Oklahoma and Kansas. The assets that were acquired are more strategically located for each company. The transaction closed December 20, 2000.

"This transaction makes both strategic and economic sense for CMS Energy," said Tim Young, senior vice president for CMS Field Services. "CMS Energy’s acquisition of the Panhandle Eastern Pipe Line Company and Trunkline Gas Company natural gas pipeline systems from Duke Energy in 1999 made these DEFS Gulf Coast assets a strategic fit for CMS Energy. The assets we received in the transaction will give CMS Energy increased opportunities to offer additional services to existing and potential shippers on CMS owned pipelines in the Gulf Coast region."

CMS Field Services acquired from DEFS 10 offshore gas gathering laterals, a one-third ownership in the Atchafalaya Pipeline System and complete ownership in a condensate measuring facility located near Patterson, La.

The 10 offshore gas gathering laterals are connected to two CMS Energy owned and operated offshore pipelines: the CMS Trunkline Gas Company’s Terrebonne system and the CMS Sea Robin Pipeline Company system. The Atchafalaya Pipeline is a 39-mile condensate pipeline that receives condensate from the Terrebonne system. The Patterson measurement facility measures condensate transported to Atchafalaya Pipeline.

Assets acquired by DEFS consist primarily of two Midcontinent natural gas gathering systems; the Bradshaw Gathering System in Kansas and the Roaring Creek Gathering System in Oklahoma.

Other assets to be acquired from CMS Field Services include the Miles Hampton and Ulysses systems in Kansas and the Christmas Lateral in South Texas.

"These assets are a great strategic fit with our assets in the area, as they will specifically provide supply to plants with existing capacity" said Michael Bradley, senior vice president, DEFS’ northern division. "This asset exchange supports our growth strategy of optimizing and rationalizing assets and allows us to offer more service options and flexibility to our customers."

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 Petroleum is an integrated petroleum company with interests around the world. Founded in Bartlesville, Okla., in 1917, the company had, as of Sept. 30, 2000, $21 billion of assets and annualized revenues of $21 billion.

Duke Energy (NYSE:DUK), 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 C 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: http://www.duke-energy.com.

CMS Panhandle Pipe Line Companies, which includes CMS Panhandle Eastern Pipe Line Company, CMS Trunkline Gas Company, CMS Trunkline LNG Company and CMS Sea Robin Pipeline Company, operate about 10,900 miles of mainline natural gas pipeline extending from the Gulf of Mexico to the Midwest and Canada. These pipelines access the major natural gas supply regions of the Louisiana and Texas Gulf Coasts as well as the Midcontinent and Rocky Mountains. The pipelines have a combined peak day delivery capacity of 5.4 billion cubic feet per day, 85 billion cubic feet of underground storage facilities and 6.3 billion cubic feet of above ground liquid storage facilities.

CMS Field Services, Inc., the midstream arm of CMS Energy, gathers, processes, transports and markets natural gas and natural gas liquids throughout the supply regions of Louisiana, the Texas Gulf Coast, West Texas, Central Texas, the Midcontinent and Rocky Mountains. CMS Field Services owns approximately 5,000 miles of gathering pipeline, and is one of the largest gatherers of coal bed methane gas in northern Wyoming.

CMS Energy Corporation has annual sales of more than $7 billion and assets of about $15 billion throughout the U.S. and around the world with businesses in electric and natural gas utility operations; independent power production; natural gas pipelines, gathering, processing and storage; oil and gas exploration and production; and energy marketing, services and trading.

 For more information on CMS Energy, please visit our website at: www.cmsenergy.com/

Contact: Kelly M. Farr, CMS Energy
Phone: 313/436-9253
24 Hour Phone: n/a
Email: n/a
Contact: John P. Barnett, CMS Energy
Phone: 713/989-7556
24 Hour Phone: n/a
Email: n/a
Contact: Liz Johnson, Duke Energy
Phone: 713/627-5011
24 Hour Phone: 704/382-8333
Email: evjohnson@duke-energy.com
Contact: CMS Energy Investor Relations
Phone: 517/788-2590
24 Hour Phone: n/a
Email: n/a