11 Expansion Projects Overview – March 2010 Pipeline & Storage Expansion Projects Overview March 2010

2 Expansion Projects Overview – March 2010 Pipeline & Storage Planned Projects Lamont Expansion Line N Expansion Tioga County Extension West to East (Phases I and II) Storage Expansion Y-M53 Direct Interconnects Northern Access Expansion

3 Expansion Projects Overview – March 2010 Overlay service territory on base map Map [Add SRC acreage] National Fuel System & NFGDC Service Territory

4 Expansion Projects Overview – March 2010 Map [Add SRC acreage] C Lamont Expansion New Compression

5 Expansion Projects Overview – March 2010 Pipeline & Storage Lamont Project Facilities Lamont Ellisburg Leidy New 1,150 HP compressor station in Elk County, PA Capacity: 40,000 Dth/d Delivery point of TGP at Lamont Expandable w/ 2 nd unit to 80,000 Dth/d C

6 Expansion Projects Overview – March 2010 Pipeline & Storage Lamont Project Description Phase I Estimated Cost: $6 million Phase I Timeline: Construction under FERC Blanket Certificate Planned Construction: March 2010 Planned In-Service: June 2010 Precedent Agreements: Seneca Resources for 30,000 Dth/d EOG for 10,000 Dth/d Phase II Precedent Agreement for 10,000 Dth/d Phase II Service Request for 40,000 Dth/d Annual Revenue of $1.7 million each Phase

7 Expansion Projects Overview – March 2010 Map [Add SRC acreage] Line N Expansion New Compression C

8 Expansion Projects Overview – March 2010 Pipeline & Storage Line N Expansion Project Facilities – Phase I New 4,700 HP compressor station in Washington County, PA 2 miles of 20 Line N replacement north of I-70 Capacity of 150,000 Dth/d Delivery point of TETCO at Ryerson (Holbrook) Station (M2) C

9 Expansion Projects Overview – March 2010 Pipeline & Storage Line N Expansion Project Description – Phase I Estimated Cost: $23 million Timeline: FERC NEPA Pre-filing October 20, 2009 Planned FERC 7(c): April 2010 Planned Construction: November 2010 Planned In-Service: November 2011 Precedent Agreements with Range Resources for 150,000 Dth/d for 11 years Annual Revenue of $6.4 million

10 Expansion Projects Overview – March 2010 Pipeline & Storage Line N Expansion Project – Phase II Increase capacity to 300,000 Dth/d Facilities: 7,000 HP expansion of proposed Buffalo Compressor Station Possible 6-mile pipeline replacement suction side of station Estimated Cost: $20-31 million Service Available: November 2012 or 2013 Open Season closed on February 26, 2010 Annual Revenue up to $6.4 million

11 Expansion Projects Overview – March 2010 Map [Add SRC acreage] Tioga County Extension New Compression

12 Expansion Projects Overview – March 2010 Pipeline & Storage Tioga County Extension Project Drivers Existing Tennessee Gas Pipeline 300 Line is at capacity Strong backwards basis differential Provides incremental transportation capacity for Marcellus Production to TGP 200 Line, TransCanada, Millennium, and on-system markets Reverses flow on existing system minimizing incremental facilities Direct-connect production in Tioga County, PA and eventually Steuben County, NY

13 Expansion Projects Overview – March 2010 Pipeline & Storage Tioga County Extension Project Facilities – Phase I Facilities: 16 miles of 24 diameter 1,290 psig pipeline 1.35 miles of 24 diameter Lift and Lay pipeline replacement New interconnection with TGP 200 Line Modifications to TransCanada measurement and control Possible modifications to Oakfield Compressor Station Capacity of at least 300,000 Dth/d Delivery points of TransCanada, TGP, and Millennium Estimated cost of incremental facilities: $45 million Tioga County Extension Corning Station New TGP Interconnect Lift and Lay Section, ~1.35 mi Empire Connector

14 Expansion Projects Overview – March 2010 Pipeline & Storage Tioga County Extension Project Description – Phase I Timeline: NEPA Pre-filing January 28, 2010 Planned FERC 7(c): August 2010 Planned Construction: May 2011 Planned In-Service: September 2011 Precedent Agreements: East Resources for 200,000 Dth/d for 10 years 2 nd Producer for 150,000 Dth/d for 10 years anticipated Annual Revenue of $29.4 million

15 Expansion Projects Overview – March 2010 Pipeline & Storage Tioga County Extension - Phase II Project expansion further south to TGP 300 Line Facilities: Approximately 20 miles of 24 pipeline Compression in Tioga County, PA to TGP Mainline compression in Ontario County, NY Combined capacity of 550,000 to 600,000 Dth/d without looping Open Season envisioned for 3Q FY 2010 Potential in-service 2013 TGP 300 Line Tioga County Extension Tioga County Extension Phase II New TGP Interconnect Lift and Lay Section, ~1.35 mi Corning Station Empire Connector C C

16 Expansion Projects Overview – March 2010 Map [Add SRC acreage] Leidy Phase I Phase II West to East Phase I & II New Compression C C

17 Expansion Projects Overview – March 2010 Pipeline & Storage West to East – Phase I & II Project Overview Provides transportation capacity to Leidy Production access from Elk, Jefferson, Clearfield, Cameron, Clinton, Clarion, Forest, McKean, and Potter Counties Critical infrastructure for SRC legacy acreage development Project may be constructed in 2 phases as production ramps-up Utilized existing infrastructure and ROWs to minimize new facilities

18 Expansion Projects Overview – March 2010 Production Drainage from: 3 Million Acres 301 Miles of Pipeline

19 Expansion Projects Overview – March 2010 Pipeline & Storage West to East Phase I & II Project Description Facilities Phase I: 39 Miles of 24 1,440 psig pipeline 4,000 to 7,000 Station in Moshannon State Forest Interconnections at Leidy Proposed Compressor Station Site Possible Compressor Station Sites NFGSC WEST to EAST (PHASE II) NFGSC WEST to EAST (PHASE I) NORTHERN SOUTHERN ALTERNATE ALTERNATE Facilities Phase II: 43 Miles of 24 1,440 psig pipeline 18,000 to 21,000 Station at Heath Station Interconnections at Leidy Minimum combined capacity of 425,000 Dth/d Delivery points of Transco, TETCO, and Leidy Estimated combined cost of $260 million

20 Expansion Projects Overview – March 2010 Pipeline & Storage West to East Phase I & II Project Description Timeline: FERC NEPA Pre-filing March 2010 Planned FERC 7(c): September 2010 Planned Construction: March 2011 Planned In-Service Phase I: November 2011 Planned In-Service Phase II: November 2012 Precedent Agreements: Seneca Resources 100,000 Dth/d for 15 years 2 Producers for 75,000 Dth/d for 15 years (credit open) Ongoing post-open season negotiations Annual Revenue of $51 million at full subscription

21 Expansion Projects Overview – March 2010 Pipeline & Storage West to East Next Phases Appalachian Lateral: 2 routes still under consideration Processing facilities required High Btu 100 – 190 miles of 24 pipeline and compression In-service target 2013 Market Direct-connect production Butler, Armstrong and Clinton counties SW PA – market diversification at Leidy and Niagara

22 Expansion Projects Overview – March 2010 Map [Add SRC acreage] Leidy Phase IPhase II C Storage Expansion New Compression C

23 Expansion Projects Overview – March 2010 Pipeline & Storage East Branch & Galbraith Storage Project Facilities East Branch Storage Facilities: 30 new wells 11.7 miles 4 – 20 pipe 9,470 HP compression at Roystone Station Galbraith Storage Facilities: 5 new wells 0.7 miles 4 pipe 1,775 HP compression at Knox Station Total Expansion: 7,900,000 Dth of 90-day service Delivered via West to East Phase I & II to Leidy Estimated Cost: $64 million Galbraith East Branch Knox Roystone C C

24 Expansion Projects Overview – March 2010 Pipeline & Storage Timeline: Planned FERC 7(c): Late 2010 Planned Construction: 2012 Planned In-Service: April 2013 (Galbraith possible in 2012) Precedent Agreements: Negotiating with 2 LDCs Requires delivery point change to Leidy from Corning Annual Revenue of $16.9 $2.05/Dth East Branch & Galbraith Storage Project Facilities

25 Expansion Projects Overview – March 2010 Map [Add SRC acreage] Phase IPhase II Leidy Y-M53 Direct Interconnects New Compression

26 Expansion Projects Overview – March 2010 Pipeline & Storage Y-M53 Direct Interconnections Potter County production to Transco at Leidy Metering and Control at Leidy required Requires JV negotiations on capacity rights Capacity up to 150,000 Dth/d Leveraging turnback Niagara capacity Estimated cost less than $1 million Timeline: FERC Blanket Certificate In-service as early as 2010 Precedent Agreements: Negotiating Post-Open Season Ellisburg Y-M53 Leidy

27 Expansion Projects Overview – March 2010 Map [Add SRC acreage] Phase I Phase II Ellisburg Niagara Leidy East Aurora Northern Access Expansion C C New Compression

28 Expansion Projects Overview – March 2010 Pipeline & Storage Northern Access Project Facilities Compression at Ellisburg and East Aurora Modification to Lockport compressor station and Niagara measurement Requires Niagara Spur Loop Line JV negotiations on capacity rights Pipeline looping may be required Capacity: at least 320,000 Dth/d C C

29 Expansion Projects Overview – March 2010 Pipeline & Storage Northern Access Project Description Niagara production to TGP 200 Line and TransCanada Niagara Source: TGP 300 Line, Transco-Leidy, and Potter County Estimated cost approximately $50 million Target in-service: 2012 Open Season closed February 17, 2010 Service requests for 1.6 Bcf/d Awarding 320,000 Dth/d Evaluating additional capacity up to 450,000 Dth/d Annual Revenue at least $13.6 million

30 Expansion Projects Overview – March 2010 Pipeline & Storage Projects on the Horizon Lamont Expansion – Phases I and II Line N Expansion – Phases I and II Tioga County Extension – Phases I and II West to East (Phases I and II) – Phases I, II, and II Storage Expansion – East Branch and Galbraith Y-M53 Direct Interconnects Northern Access Expansion

31 Expansion Projects Overview – March 2010 Map [Add SRC acreage] Leidy Phase I Phase II Ellisburg Niagara East Aurora New Compression National Fuel Proposed System Expansion