Line N 2012 Expansion Project

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Line N 2012 Expansion Project Washington County Public Meeting February 15, 2011

Extensive community involvement early on Open dialogue with the public We are here to: Answer your questions Listen to your comments Gather your input Please hold questions until the end Community Involvement

100+ years experience in Pennsylvania Parent company of National Fuel Gas Supply Corporation National Fuel Gas Company

Four main business segments: Exploration & Production Pipeline & Storage: owns and operates 2,800 miles of interstate natural gas pipelines Utility Energy Marketing National Fuel Gas Company

Natural gas supplies 24% of all energy used in the U.S. In 2009, the U.S. consumed 22.8 Tcf of natural gas. Consumption of natural gas will increase 20% by 2030 - U.S. Department of Energy Natural Gas is in Demand

Natural gas is delivered to customers through a safe, 2.3 million mile underground pipeline system that includes 300,000 miles of transmission lines. Natural Gas is in Demand

Will replace 1947 vintage 20-inch high pressure natural gas pipeline with approximately 6 miles of 24-inch pipeline. Add 20,620 horsepower at Buffalo Compressor Station (under construction) Will increase the capacity of Line N to meet future capacity requirements for locally produced gas transported from the Marcellus Shale Project Overview

Total new capacity: 195 MMcf/day Will provide reliable supplies of energy to western PA and the northeastern U.S. 24-inch pipe buried a minimum of three feet underground Project Overview

Spring/Summer 2011 July 2011 Fall 2011 January 2012 February/March 2012 April 2012 Spring 2012 Summer/Fall 2012 November 2012 Summer 2013 ongoing Environmental and Engineering Studies Submit application to FERC Begin rights-of-way acquisition Anticipate FERC approval Possible timber clearing and site activities Begin compressor station construction Begin pipeline construction Begin restoration activities In-service date Remaining restoration; monitor crop yields Project Timeline

Compressor Station: Located south of Pleasant Valley Road in Buffalo Township, PA Construction entirely on National Fuel property Preliminary Route

Pipeline: Begins at Buffalo Compressor Station and ends approximately six miles to the north, just north of Lynn Portal Road in Mt. Pleasant Township, PA Parallels existing Line N Existing pipeline will remain in place lower pressure service Preliminary Route

Similar design to Buffalo Compressor Station under construction (2 Units) Compressor Station

Similar design to new addition at Buffalo Compressor Station 2 @ 10,310 horsepower turbine driven centrifugal compressors Compressor Station

Low-emission technology Emissions similar in make up to those from a house furnace Annual testing done and reported to DEP and EPA Low-noise design Maximum 55 decibels at closest Noise Sensitive Area Compressor Station

Investing approximately $40 million in Pennsylvania Creating 125 jobs during construction Supporting local businesses during construction and operation Ongoing work with area companies Economic Impact of the Project

Maximize use of existing Line N corridor Maximize use of Buffalo Compressor Station site currently under development Minimize impact to landowners Engineering and technical issues Factors in Selection of Route

Minimize disturbance of land Natural resource preservation Cultural and archeological resource preservation Factors in Selection of Route

Safety is our priority Outstanding safety record Pipeline and compressor station are constructed and maintained to meet or exceed federal safety code Safety

Compressor station equipped with state-ofthe-art emergency shutdown system Regulated and inspected by U.S. Department of Transportation Monitored 24/7 by Gas Dispatch Center Safety

Seeking permission for: o Surveying property mostly by walking land o Minimal disturbance by shovel testing, if necessary o Test holes repaired upon completion of test Surveying in Your Area

Surveying does not harm the land Company representatives carry photo ID at all times Will not ask to enter your home for any reason Surveying in Your Area

Land owner compensated for land use and economic loss caused by construction Based on fair market property values Land restored to original or better condition Landowner Compensation

Before During After Proven Results

Contact: Sandra L. James Assistant Director Corporate Communications Phone: 1-800-677-8004 Address: Feedback c/o Corporate Communications Dept. PO Box 2081, 1100 State Street Erie, PA 16512-2081 E-mail: jamess@natfuel.com Questions, Comments & Input