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I. NATURE OF BUSINESS OF CLAIMANT AND EVERY SUBSIDIARY THEREOF

     MCN ENERGY GROUP INC.: MCN Energy Group Inc. (MCN or the Corporation) is a
diversified energy holding company with markets and investments throughout North
America and in Asia. MCN is organized under the laws of the state of Michigan
and has its principal executive offices at 500 Griswold Street, Detroit,
Michigan 48226. Except where otherwise indicated, the Corporation owns directly
all of the outstanding common stock of MichCon Holdings, Inc., Citizens Gas Fuel
Company (Citizens), Southern Missouri Gas Company (SMGC), MCN Investment
Corporation (MCNIC) and various MCN financing companies. MCN's major business
groups are Gas Distribution and Diversified Energy. Except where otherwise
indicated, the companies set forth below are Michigan corporations located at
500 Griswold Street, Detroit, Michigan 48226.

                                GAS DISTRIBUTION

    MCN, through the following subsidiaries, operates the largest natural gas
distribution and intrastate transmission system in Michigan and one of the
largest in the United States.

     A.  MICHCON HOLDINGS, INC. is the holding company (formed on September 9, 
1998) for Michigan Consolidated Gas Company (MichCon) and MichCon Enterprises,
Inc. MichCon is a public utility engaged in the distribution and transmission of
natural gas in the state of Michigan. MichCon was organized in 1898 and, with
its predecessors, has been in business for nearly 150 years. MichCon serves 1.2
million residential, commercial and industrial customers in the Detroit, Grand
Rapids, Ann Arbor, Traverse City and Muskegon metropolitan areas and in various
other communities throughout the state of Michigan. MichCon conducts
substantially all of its business in the state of Michigan and is subject to the
jurisdiction of the Michigan Public Service Commission (MPSC) as to various
phases of its operations, including gas sales rates, service, and accounting.
MichCon Enterprises, Inc., ( A non-regulated affiliate) was formed on September
9, 1998 to engage in non-regulated activities. 

    Except where otherwise indicated, the companies set forth below are wholly
owned subsidiaries of MichCon.

    1. MichCon Power Company, Inc., formerly MichCon Guardian Corporation, was
       formed to participate in power generation projects. MichCon Power Company
       and DQE Energy Services intend to enter into a partnership to provide
       electricity, heating & cooling to the new Midfield terminal at the
       Detroit Metropolitan Airport.

    2. MichCon Development Corporation, through its various partnership
       arrangements, is engaged in the design, construction and management of
       Harbortown, a residential and small commercial development constructed 
       along the Detroit River in Detroit, Michigan.

    3. Blue Lake Holdings, Inc. (Blue Lake), holds a 25% interest in Blue Lake
       Gas Storage Company, a partnership that has converted a depleted natural
       gas field in northern Michigan into a 46 Bcf natural gas storage field
       which it now operates.



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    4. MichCon Fuels Enterprises Company markets natural gas as a vehicular fuel
       and markets natural gas to residential and commercial customers through 
       transportation pilot programs in Michigan. During the fourth quarter of
       1998, Fuels Enterprises was transferred to MichCon Enterprises, Inc.

    5. MichCon Pipeline Company, through the subsidiaries below, is engaged in
       pipeline and gathering projects in Michigan.

       a.MichCon Gathering Company owns and operates the Antrim Expansion
         Pipeline.

       b.Saginaw Bay Pipeline Company is the 66% general partner in Saginaw Bay
         Area Limited Partnership, a partnership that operates a 126-mile
         pipeline which transports natural gas and natural gas liquids from
         reserves in east-central Michigan to natural gas processing plants in
         northern Michigan.

       c.Saginaw Bay Lateral Company is the 46% general partner in a partnership
         which owns and operates lateral pipelines interconnecting with the
         126-mile pipeline previously described.

       d.Westside Pipeline Company invests in various pipeline and gathering
         assets in Michigan.

       e.Thunder Bay Gathering Company acquired a pipeline in December 1997,
         consisting of 44 miles of gathering lines situated in Alpena and Alcona
         Counties in northeast Michigan.

       f.MichCon Lateral Company was formed in 1997 to own, operate and
         construct natural gas pipelines and gathering systems in Michigan.

    6. Huron Pipeline Company was formed in 1996 to acquire an ownership
       interest in the ANR Link Pipeline, which transports natural gas to Canada
       through a pipeline owned by Niagara Gas Transmission Limited, a
       subsidiary of The Consumers Gas Co. Ltd.

       a.Huron Gas Services Company, formed in 1996, markets pipeline
         transportation services.

    7. Kalkaska Gas Storage Limited Partnership holds a 53.5% general
       partnership interest in the Cold Springs Gas Storage Limited Partnership
       in Kalkaska County, Michigan.

    Except where otherwise indicated, the companies set forth below are wholly 
    owned subsidiaries of MichCon Enterprises, Inc.:

    1.  MichCon HVAC 1 Company was formed on September 14, 1998 to participate
        in the acquisition of Flame Furnace Company. MichCon HVAC 1 company is
        a wholly owned subsidiary of MCN. The direct relationship with MCN was 
        done in order to qualify for tax advantage treatment under the 
        Internal Revenue Code. It is management's intent to transfer the 
        stock of MichCon HVAC 1 Company to MichCon Enterprises, Inc. in 1999. 

       a.Flame Furnace Company, is engaged in heating, ventilation and air
         conditioning activities.

    2. MichCon HVAC, L.L.C. was formed on December 14, 1998 and is a single
       member L.L.C. and it's purpose is to hold the assets of HVAC 2 Company.
       MichCon HVAC 2 Company is a wholly owned subsidiary of MCN. The direct
       relationship with MCN was done in order to qualify for tax advantage
       treatment under the Internal Revenue Code. It is management's intent to
       transfer the stock of MichCon HVAC 2 Company to MichCon Enterprises, Inc.
       in 1999.      

       a.MichCon HVAC 2 Company was formed to participate in the asset
         acquisition of Kopke Heating & Cooling, Inc. and is engaged in heating,
         ventilation and air conditioning activities.

    3. MichCon HVAC 3 Company was formed on September 22, 1998 to participate
       in the asset acquisition of Tri-Masters Heating & Cooling, Inc. and is 
       engaged in heating, ventilation and air conditioning activities. 

       a.Tri-Masters Heating & Cooling, Inc. is engaged in heating, ventilation
         and air conditioning activities.

B.  CITIZENS GAS FUEL COMPANY: Citizens is a public utility engaged in the
    distribution of natural gas. Citizens' was organized in 1951 and, with its
    predecessors, has been in business for more than 140 years. Citizens serves
    approximately 15,000 residential, commercial and industrial customers in and
    around Adrian, Michigan. Citizens' principal executive offices are located
    at 127 N. Main Street, Adrian, Michigan 49221. Citizens' conducts all of its
    business in the state of Michigan and its rates are set by the Adrian Gas
    Rate Commission. Other various phases of its operations are subject to the
    jurisdiction of the MPSC.

C.  SOUTHERN MISSOURI GAS COMPANY: MCN owns a 47.5% interest in Southern
    Missouri Gas Company, L.P. (SMGC) which is a public utility engaged in the
    distribution of natural gas. SMGC was organized in 1996 and with its


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    predecessors, has been in business since 1995. SMGC serves approximately
    7,000 residential, commercial, and industrial customers in southern
    Missouri. The principal executive offices of SMGC are located at 301 East
    17th Street, Mountain Grove, Missouri 65711. SMGC conducts all of its
    business in the state of Missouri. Its rates and other various phases of its
    operations are subject to the jurisdiction of the Missouri Public Service
    Commission.




                               DIVERSIFIED ENERGY

D.  MCN INVESTMENT CORPORATION: Organized in 1986, MCNIC is the holding
    company for MCN's various diversified energy subsidiaries. MCNIC, through
    its subsidiaries and joint ventures, provides gathering, processing and
    transmission services, invests in electric generation and distribution
    facilities, engages in energy marketing activities, storage services,
    engages in gas and oil exploration, development and production, and is
    involved in other energy-related businesses. Except where otherwise
    indicated, the companies set forth below are wholly owned subsidiaries of
    MCNIC.

    Pipelines & Processing

        MCNIC's Pipelines & Processing businesses are involved in ventures that
    gather and transport natural gas from producing fields to processing plants
    and/or markets. This business also includes plants which process natural gas
    to remove CO2 and other impurities and recover natural gas liquids.
    Additionally this segment has an investment in a methanol production
    facility and other energy-related businesses.

    1. MCNIC Pipeline & Processing Company engages in pipeline and processing
       projects through the following subsidiaries and partnerships.
        a.          MCNIC Offshore Pipeline & Processing Company holds a 33%
                    interest in the Blue Dolphin System.
        b.          MCNIC Michigan Holdings, Inc.
                    i.   MCNIC CSG Pipeline Company holds a 50% interest in
                         Cardinal States Gathering.
                    ii.  Bagley Processing Company (47% general partnership
                         interest)
                    iii. Warner Treating Limited Liability Company (95%
                         interest)
                    iv. Terra-Westside Processing Company (85% interest) v.
                     v. ThunderBay Pipeline Company, L.L.C. (90% interest)
                        holds CO2 Processing Plants.
        c.          MCNIC East Coast Pipeline Company holds a 20% interest in
                    the 250 mile Portland Pipeline Project.
        d.          MCNIC Jonah Pipeline Company holds a 33% partnership
                    interest in Jonah Gas Gathering Company.
        e.          MCNIC Gulf Coast Gathering Company holds a 1% general
                    partnership interest in Copano Field Services, L.P.
        f.          MCNIC Gulf Coast Limited, Inc. holds a 49% limited
                    partnership interest in Copano Field Services, L.P., and a
                    90% limited partnership interest in CFS/Upper Gulf Coast,
                    Copano Pipelines/Upper Gulf Coast, L.P., and CES/Upper Gulf
                    Coast, L.P.
        g.          MCNIC Mobile Bay Pipeline Company holds a 34.6% interest in
                    Dauphin Island Gathering Partners.
        h.          MCNIC Mobile Bay Processing Company holds a 42.8% interest
                    in Mobile Bay Processing Partners.
        i.          MCNIC South Texas Gathering Company holds a 1% general
                    partnership interest in each of CFS/Copano Bay, L.P.,
                    CFS/South Texas, L.P. and CFS/Agua Dulce, L.P.
        j.          MCNIC Upper Gulf Coast Pipeline & Processing Company holds a
                    1% interest in Copano Pipeline/ Upper Gulf Coast, L.P.
        k.          MCNIC General Methanol Company holds a 1% general
                    partnership interest in Lyondell Methanol Co. L.P.
        l.          MCNIC Methanol Holdings Company holds a 24% limited
                    partnership interest in Lyondell Methanol Co. L.P.
        m.          American Central Western Oklahoma Gas Company (40% interest)
        n.          Crown Asphalt Ridge, L.L.C. (75% interest)
        o.          Indiana Gathering, L.L.C. (69.5% interest)
        p.          MCNIC East Texas Gathering Company holds a 39.9% limited
                    partnership interest in American Central Eastern Texas Gas
                    Company, L.P.
        q.          MCNIC East Texas Pipeline & Processing Company holds a 0.1%
                    general partnership interest in American Central Eastern
                    Texas Gas Company, L.P.
        r.          MCNIC CO2 Investment Company holds a 41.5% limited
                    partnership interest in PSCO2, L.P., a CO2 pipeline project.
        s.          MCNIC Permian Basin Company holds a 0.99% general
                    partnership interest in PSCO2, L.P.
        t.          MCNIC Rodeo Gathering Inc. holds a 25% interest in Keyes
                    Helium Company, L.L.C. 


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                    i. Keyes Helium Company, L.L.C. is a joint venture which
                    processes helium out of natural gas.
        u.          Crown Asphalt Distribution, L.L.C. was formed to own and
                    operate Asphalt Distribution & Processing Facilities.
        v.          Bitter Creek, L.L.C. was formed to own and operate a
                    gathering line in Campbell County.
        w.          MCNIC Millennium Company was formed to participate in the
                    Millenium Pipeline Project.
        x.          MCNIC Vector Pipeline was formed to hold a limited
                    partnership interest in Vector Pipeline, L.P., A Delaware
                    Limited Partnership, which will construct, own and operate
                    the Vector Pipeline Project.
        y.          CRC Holdings, L.L.C. was formed as a holding company for the
                    following companies:
                      i.   CRC No. 1 L.L.C.
                      ii.  CRC No. 2 L.L.C.
                      iii. CRC No. 3 L.L.C.
                      iv.  CRC No. 4 L.L.C.
                      v.   CRC No. 5 L.L.C.
                      vi.  CRC No. 6 L.L.C.

Electric Power

         MCNIC's Electric Power businesses pursue electric generation and
         distribution opportunities throughout North America and in Asia.

    2. MCNIC Power Company pursues domestic and international power generation
       related opportunities.

       a. CDC Ada, Inc. is a 49% limited partner in Ada Cogeneration Limited
          Partnership, which owns and operates a 30 megawatt (MW) natural
          gas-fueled cogeneration facility in western Michigan.

       b. MCNIC Ada GP, Inc. was formed in 1996 and holds a 1% general
          partnership interest in the Ada Cogeneration Limited Partnership.

       c. Ludington Cogeneration Co. is the 1% general partner in Michigan Power
          L.P., a joint venture that built and operates a 123 MW natural
          gas-fueled cogeneration plant in western Michigan.

       d. Ludington Cogeneration Holdings, Ltd. is a 49% limited partner in the
          123 MW cogeneration plant mentioned above.

       e. Summit Computing, Inc., a Delaware corporation, holds a 99% limited
          partnership interest in Source Midland Limited Partnership. Source
          Midland Limited Partnership has an 23.1% general partnership interest
          in the Midland Cogeneration Venture Limited Partnership.

       f. Source Cogeneration Company, a Delaware corporation, holds a 1%
          general partnership interest in Source Midland Limited Partnership.

       g. Mobile Bay Energy, L.L.C. is constructing a 40 MW cogeneration
          facility in Alabama (50% interest).

       h. MCNIC Person GP, Inc. was formed to hold a 94% interest in
          Cobisa-Person Limited Partnership, a Delaware LP.

       i. South Norwalk Power Partners, L.L.C. was formed on March 2, 1998.  
          The Michigan Limited Liability Company was formed to participate in 
          power projects.

Energy Marketing

    MCNIC's Energy Marketing businesses pursue opportunities throughout the
Midwest, Gulf Coast and Northeast regions of the United States and eastern
Canada.

    3. CoEnergy Trading Company is engaged in the purchase and sale of natural
       gas to large-volume gas users and gas and electric utilities in Michigan,
       the Midwest, the eastern United States and Canada. CoEnergy Trading
       Company holds a 50% interest in the following:

       a. U.S. CoEnergy Services, a Wisconsin general partnership
       b. Torch CoEnergy, L.L.C.
       c. DTE-CoEnergy, L.L.C.


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    4. CoEnergy Canadian Holdings, Ltd., a New Brunswick corporation, was formed
       to market and sell natural gas in Canada and the northeastern United
       States.

    5. CoEnergy Supply Company engages in the purchase and sale of natural gas,
       a portion of which is produced by subsidiaries of MCNIC Oil & Gas
       Company.

    6. MCNIC Gas Storage Company engages in the storage of natural gas.

       a.South Romeo Gas Storage Company, a Michigan partnership in which MCNIC
         Gas Storage Company has a 50% interest, owns and operates the
         Washington 28 Gas Storage Field, a 10 Bcf storage field in southeastern
         Michigan which provides storage services to MCNIC's Energy Marketing
         and Electric Power operations. South Romeo Gas Storage Company holds a
         33% interest in South Romeo Gas Storage Corporation.

       b.W-10 Holdings, Inc., holds a 40% interest in Washington 10 Storage
         Partnership, a partnership that is developing and will operate the
         Washington 10 Storage Field, a 42 Bcf storage field in southeastern
         Michigan. Washington 10 Storage Partnership owns Washington 10 Storage
         Corporation.

       c.The Orchards Golf Limited Partnership, a Michigan partnership in which
         MCNIC Gas Storage Company has a 50% interest, developed, owns and
         operates a residential community and golf course on 520 acres of land
         above the South Romeo gas storage field in southeastern Michigan.

Exploration & Production

   7.   MCNIC Oil & Gas Company (MOG) is engaged in natural gas and oil
        exploration, development and production in the Midwest/Appalachia,
        Midcontinent/Gulf Coast and Western regions of the U.S. MCN is committed
        to the sale of its exploration and production properties and expects the
        sale to be completed in mid-1999. Accordingly, MOG has been accounted 
        for as discontinued operations. The following companies are direct
        subsidiaries of MOG:
        a.          Appalachia Acquisition Properties, Inc.
        b.          Elmira Antrim Company
        c.          GeoTrend Exploration, Inc.
        d.          Green Oak Development Company
        e.          Green River Antrim Company
        f.          Gulf Coast Acquisition Properties, Inc.
        g.          Otsego Exploration Company, L.L.C.
        h.          MCNIC Enhanced Production, Inc. has a 75% interest in Otsego
                    EOR, L.L.C.
        i.          MCNIC Oil & Gas Midcontinent, Inc.
        j.          MCNIC Oil & Gas Canada, Inc. (a New Brunswick corporation)
        k.          MCNIC Oil & Gas Properties, Inc.
                    i.    SEM, a 50% owned joint venture, was established to buy
                          and sell E&P Properties.
        l.          MCNIC Oil & Gas Reid Properties, Inc. (a Delaware
                    corporation)
                    i.    Appalachian Methane, Inc., a Delaware corporation,
                          holds a 50% interest Buchanan Production Co., a
                          Virginia general partnership.
                    ii.   Appalachian Operators, Inc., (a Delaware corporation)
                          holds a 50% interest in Buchanan Production Co., a
                          Virginia general partnership.
                    iii.  MCNIC Oakwood Gathering, Inc. (a Delaware corporation)
        m.          MCNIC West Coast Company
        n.          Warner Antrim Company
        o.          MCNIC Oil & Gas CV Company
        p.          Michigan Acquisition Properties, Inc.
        q.          Midcontinent Acquisition Properties, Inc.
        r.          Pageant Corporation
        s.          Rockies Acquisition Properties, Inc.



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     Other

     8. MCNIC International Holdings and MCNIC-GP International Holdings, each
        of Grand Cayman, Cayman Islands, hold a 99% and 1% interest,
        respectively, in IG-ONE LTD of Port-Louis, Mauritius. IG-ONE LTD. has a
        40 percent interest in Torrent Power Limited, a joint venture with
        Torrent Group of Ahmedabad, India. The joint venture is involved in the
        electric generation and distribution business in western India. IG -ONE
        LTD. also holds ownership interests in other power generation projects
        in India. In February 1998, MCN has agreed to sell its interest in TPL
        to Torrent Group of India.

     9. MCNIC Nepal Limited holds a 90% ownership interest in a 36 MW
        hydroelectric power project in Nepal.

    10. Colombia Holdings was formed to be the shareholder of MCNIC Colombia
        International, which had been expected to invest in an urea processing
        plant in Colombia.

    11. Bridgewater Holdings, Inc. holds a limited partnership interest in
        Bridgewater Place, a Grand Rapids, Michigan office building.

    12. Combustion Concepts, Inc. holds patents for the development of
        pressurized combustion technologies which provide increased fuel
        efficiency, heat uniformity and compactness of equipment.

Financing Companies

E.  MCN MICHIGAN LIMITED PARTNERSHIP (MCN Michigan): MCN is the 1% general
    partner in MCN Michigan, a Michigan limited partnership. MCN Michigan exists
    for the sole purpose of issuing its limited partnership interests in the
    form of preferred securities and investing the gross proceeds thereof in 
    MCN debt securities.

F.  MCN FINANCING I: MCN is the sole owner of MCN Financing I, a Delaware
    Business Trust. MCN Financing I exists for the sole purpose of issuing
    preferred securities and investing the gross proceeds thereof in MCN debt 
    securities.

G.  MCN FINANCING II: MCN is the sole owner of MCN Financing II, a Delaware
    Business Trust. MCN Financing II exists for the sole purpose of issuing
    preferred securities and investing the gross proceeds thereof in MCN debt
    securities.

H.  MCN FINANCING III: MCN is the sole owner of MCN Financing III, a Delaware
    Business Trust. MCN Financing III exists for the sole purpose of issuing
    preferred securities and investing the gross proceeds thereof in MCN debt 
    securities.

I.  MCN FINANCING IV: MCN is the sole owner of MCN Financing IV, a Delaware
    Business Trust. MCN Financing IV exists for the sole purpose of issuing
    preferred securities and investing the gross proceeds thereof in MCN debt
    securities.

J.  MCN FINANCING V: MCN is the sole owner of MCN Financing V, a Delaware
    Business Trust. MCN Financing V exists for the sole purpose of issuing
    preferred securities and investing the gross proceeds thereof in MCN debt 
    securities. During 1998, MCN Financing V redeemed all outstanding shares of
    the preferred securities.

K.  MCN FINANCING VI: MCN is the sole owner of MCN Financing VI, a Delaware
    Business Trust. MCN Financing VI exists for the sole purpose of issuing
    preferred securities and investing the gross proceeds thereof in MCN debt 
    securities.

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