Norse Pipeline Operations

Receipt meters on the Mayville system:

Receipt meters on the Little Valley system:

The compression facility at the

All shippers on both Norse systems are offered a dehydration

This is a service Norse offers which allows producers

Norse is willing to negotiate longer-term deals at Gathering winter (11/1 - 3/31) $0.32/Dth Gathering summer (4/1 - 10/31) $0.35/Dth Retainage 2.75% Minimum Daily Quantity 20 Dth

Delivery charges on the Mayville system: Sugar Grove, PA - NFG Supply $0.035/Dth Waterford, PA - NFG Distribution $0.080/Dth Mayville - Tennessee Zone 5 $0.000/Dth Mayville - NES/BPU power plant $0.000/Dth

Only delivery option currently available is into NFG Supply NY, at no incremental delivery charge. Gathering winter (11/1 - 3/31) $0.32/Dth Gathering summer (4/1 - 10/31) $0.35/Dth Retainage 3.50% Minimum Daily Quantity 20 Dth pipeline pressure on the Norse Little Valley segment is 20# at the inlet of our central delivery point into NFG Supply. Norse offer shippers this option for a charge of $0.145/Dth

option for an incremental charge of $0.05/Dth. to deliver gas with a water vapor content higher than 20# .

a discount to the above default rates.

December 1, 2002

New Staffing of Norse Pipeline

Norse Pipeline has hired four new employees to handle its daily office and field operations. Larry Swanson, who has been associated with Project Penny for over 20 years, has been hired as Operations Manager. Pennie McChesney is our new Office Manager. Paul Groves and Hank Williams, each with numerous years of experience maintaining this system, will handle field operations and maintenance.

We have moved our local office from Mayville to 19 Ivy Street, Jamestown, New York. Our telephone numbers are: 716-753-7909 or 716-484-9149; facsimile number is 716-487-1275; and our emergency number remains 877-753-7909.

April 29, 2002

Waterford Meter Point

On May 1, 2002 Norse Pipeline should be ready to accept nominations for our new delivery point into NFG Distribution in Pennsylvania at Waterford.

February 1, 2002

Operations Manager of Norse Pipeline

Gary Counts has left Norse Pipeline in his position as Operations Manager. In the interim, you may direct any questions regarding Norse Pipeline to Steve Bolles at our same telephone number and address.

December 14, 2001

Little Valley Compressor

Beginning the week of December 17, 2001, Norse Pipeline will deliver gas into National Fuel Supply Corporation at Little Valley, NY through its new 830 HP compressor. The line will operate as a low-pressure system, with 20 psig at the compressor inlet. Those shippers currently moving gas on the Norse system in the area or those who have access to the system can expect to reduce or eliminate their compression cost (both equipment and fuel) due to the low pressure. We believe the maximum pressure on this system will not exceed 40 psig. The installation of the Little Valley compressor is another step in Norse's on-going effort to meet the needs of producers and shippers for low-cost, low-pressure gas gathering services. If you have gas in the area which could utilize low-pressure gathering service, we would be happy to assist you in analyzing the economical impact our system could have on your gas. For more information call us at 716-753-7909, 716-763-1553, or 713-975-1900 ext.6.

October 31, 2001

Are you getting our news messages?

It has come to our attention that when we turn on or turn off our "News Alert" flashing exclamation point, for some of you the button may stay as it had been previously. Therefore, you may think that either we never have anything new to say or that we keep the alert button on all the time. If you do not see occasional changes in the alert button, you may not be getting our news messages. To correct the problem, you need to perform a simple clean-up function on your computer. Open your browser, click on Tools, click on Internet Options. In the Temporary Files section, click on Delete. That will clean out your temporary cache which had just gotten too full to handle the changes we make to the website. Our IT people tell us that cleaning out the temporary files is a process which should be performed routinely. Let me know if you need help or are having any problems with our website. It serves no purpose unless it is of benefit to you. Thanks.

September 7, 2001

Gas Sales Opportunity - Jamestown BPU Power Plant

In July 2001, the Jamestown BPU commenced initial testing of the gas fired electric generating turbine. The BPU anticipates that the facility will be fully operational this fall. It is, therefore, requesting that interested sellers contact the BPU (716-661-1670) to receive the bid proposal documents. These forms must be completed and returned to the BPU by September 17th for you to be added to the list of pre-approved potential bidders eligible to make future gas supply bids.

This is an extremely significant event to you as a Shipper on Norse Pipeline, LLC ("Norse"), since for the cost of gathering on Norse you can - at no additional expense to you - have your gas supply made available at Norse's Mayville delivery point to NES for delivery to the BPU. Other suppliers may have to factor in the cost of transportation on Tennessee Gas and possibly other upstream interstate pipelines. This cost differential should provide you with a significant competitive advantage, due to the close proximity of your gas supply to the market.

Given the short response period to indicate to the BPU your interest in being added to the list of pre-approved bidders, we determined that Norse should assist in bringing this development to your immediate attention.

Norse continues to strive to provide flexible and cost efficient solutions to move local Applachian production gas to market. Our hope and expectation is that opportunities such as this will create increased interest in your utilization of the Norse system for your gas gathering needs. If you would like to discuss additional gas supply connections or any other matters related to this communication, do not hesitate to contact Norse General Manager Gary Counts at 716-753-7909.

----------------------------------------

June 21, 2001

The gas flow logistics of the Norse Pipeline segments east of Gerry, New York will change after July 1, 2001. This may impact your gas deliveries on these segments. If you have production in the towns of Gerry, Ellington, Conewango, Napoli, Little Valley, Charlotte, Leon, Poland, Randolph, and Carroll please contact Gary Counts in our Mayville office, telephone 716-753-7909. Letters have been sent to our existing producers, but if you have not received yours, we need to hear from you.

----------------------------------------

Welcome to the Norse Pipeline web site. We are pleased to provide you with this latest technology which will allow you and the parties nominating your gas to have real time access to flow information on your delivery point(s) to Norse.

This page will provide you with Norse Pipeline operational information, such as downtime or repairs. An Alert icon will appear next to News if there are issues we would like to bring to your attention immediately.

Additionally, we will provide other news which we believe can be of interest to you in your operations.

Check back here frequently for the latest updates.