February 29, 2000 Received 2/29/00 11:30 am Posted 2/29/00 11:30 am Dear Producers and Shippers, In January, you were notified that the Schultz Gas Processing Plant would be permanently shut down on February 29, 2000. We heard from many of you regarding the financial hardship this shut down may cause Schultz area producers while a gas delivery alternative was being constructed. Given your concerns and given that natural gas liquids prices have risen sufficiently to allow operations at Schultz to be marginally profitable, CNG Transmission will continue to operate the Schultz facility until: 1. it becomes uneconomic to continue operations or, 2. CNG develops a compression/pipeline alternative for delivering and processing the Schultz area gas elsewhere on its system.

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