News Release
Jan. 24, 2001


DENVER – Duke Energy Field Services (DEFS) announced today the initiation of service on a newly constructed 12-inch, 42-mile natural gas pipeline in central Oklahoma. The new pipeline system from DEFS’ Carney facility to its Kingfisher Plant near Cashion, Okla., is capable of transporting 60 million cubic feet per day (MMcf/d).

The new pipeline along with an expansion of the Kingfisher Plant will allow DEFS to increase gas flows from areas that have been constrained by lack of gas processing capacity. The commissioning of this pipeline will allow the company to consolidate its West Guthrie and West Edmond facilities into the more efficient Kingfisher plant.

The expansion of the Kingfisher Plant, targeted for completion by March, will increase processing capacity from 135 MMcf/d to 165 MMcf/d by increasing inlet liquid handling, refrigeration compression and amine treating capabilities.

"The Kingfisher Plant expansion will accommodate gas volumes from West Edmund and West Guthrie as well as excess gas from the Carney area," said Michael Bradley, senior vice president, Northern division. "This project benefits both DEFS and its customers by increasing efficiencies and providing much needed capacity for the new gas supplies being developed in this growing area in Oklahoma. While our initial plans called for the closing of the Carney Plant as well, we recognize that the significant production growth in the area may require that it remain open indefinitely."

A second Oklahoma consolidation project calls for the construction of a pipeline and compression facilities by July, enabling the flow of 26 MMcf/d from DEFS’ Goldsby Plant to its nearby Mustang and Chitwood facilities south of Oklahoma City. A portion of the production currently being processed at Chitwood will be redirected to DEFS’ Sholem Plant. Once this expansion is completed, the Goldsby facility will be closed.

As part of its combination with the gathering and processing assets of Phillips Petroleum’s GPM Gas Corporation unit in March 2000, DEFS realized efficiencies and cost savings by directing the processing of natural gas to its most efficient facilities. In addition to the pending closing of the West Guthrie and West Edmond plants, DEFS was able to close its Martin and Hulldale plants in West Texas, by moving the gas to its nearby Spraberry and Ozona facilities. Additionally in central Oklahoma DEFS closed its Seiling Plant by diverting the gas to its Mooreland facility.

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 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

Phillips 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, 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 more than $49 billion in 2000. 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:

Contact: Liz Johnson
Phone: 713/627-5011
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