News Release

July 18, 2008

Consumers will not pay for lost natural gas

The cost of an unusually large amount of natural gas that escaped into the atmosphere as a result of two unique one-time events on the Southern Star Central Pipeline, Inc. system (Southern Star) will not be passed on to consumers.

As a result of the intervention of the Kansas Corporation Commission and the Missouri Public Service Commission protesting Southern Star's filing at the Federal Energy Regulatory Commission (FERC) to recover "lost and unrecoverable" gas, including gas related to these two incidents, a settlement agreement was reached among the parties. Other interveners in the case were: Aquila, Inc. d.b.a. Aquila Networks; Atmos Energy Corporation; Kansas Gas Service, a Division of ONEOK; Koch Nitrogen Company; and Missouri Gas Energy, a Division of Southern Union Company.

Under the settlement agreement, approximate $4.8 million will not be passed on to Kansas ratepayers for the gas lost in the two unusual events.

Pipeline companies, such as Southern Star annually request permission from FERC to pass-on the cost of lost gas to its wholesale customers who subsequently pass the cost to the end-user.

Southern Star is the largest wholesale transporter of gas used by Kansans. Southern Star was previously known as the Williams Pipeline Company.