How Williams approaches a project from a Land Perspective Presented by: Patrick McClusky, Senior Land Representative

Williams is an energy infrastructure company focused on connecting North America’s significant hydrocarbon resource plays to growing markets for natural gas, natural gas liquids, and olefins. Williams owns and operates midstream gathering and processing assets, and interstate natural gas pipelines. Based in Tulsa, Oklahoma Founded in 1908 Operates 3 major natural gas pipeline systems − Transco − Northwest Pipeline − Gulfstream Delivers approximately 14% of the natural gas consumed in U.S. 15,000 miles of interstate natural gas pipelines Who is Williams?

 Williams operates the Transco pipeline, a 10,200-mile natural gas transportation system that extends from South Texas to New York City. Transco’s deliveries account for 8% of the natural gas consumed in the U.S.  The Transco pipeline has reliably served New Jersey for more than 60 years, providing service to major local distribution companies such as PSE&G, South Jersey Gas, Elizabethtown Gas and New Jersey Natural Gas. The pipeline transports about 60% of the gas used in New Jersey, with supplies originating primarily from the Gulf Coast and Appalachia.  New Jersey statistics  534 miles of pipe  4 compressor stations  69 meter stations  1 LNG facility  101 employees Williams’ presence in New Jersey Transcontinental Gas Pipe Line

 In New Jersey, the project included:  a 6.64 mile loop of 42” diameter pipeline in Hunterdon County  uprating of 25.5 miles of existing pipeline in Essex, Passaic, Bergen, and Hudson Counties  a 0.46 mile replacement of pipeline in Essex County  the construction of a new electric-powered compressor station in Essex County An overview of a portion of a recent project Northeast Supply Link

 Four main stages  Preparation  Acquisition  Construction  Restoration The Land Department is typically “the first one in and the last one out” Land’s Approach to an Expansion Project

 Create a budget  Determine staffing needs  Obtain a regional appraisal  Create a line list and field files  Update records (title, tax maps, etc.)  Identify potential Land issues  Assist survey and review plats  Initiate landowner outreach  Attend Open Houses Preparation

 Formulate offers  Engage in negotiations  Order appraisals  Initiate condemnation where necessary  Special acquisition issues in New Jersey  Proximity of homes to pipeline corridor  Extreme environmental regulation  Green Acres, etc. Acquisition

 Remain in constant communication with landowners  Assist construction department where needed  Handle the multitude of landowner issues that arise Construction

 Investigate/handle damage claims  Settle outstanding damage payments/repairs Restoration

 Landowner fears  Safety concerns  Pipeline accidents  Fear of construction workers  Stigma  Impact on the ability to sell home  Possible loss of home resale value  Damage concerns  Damage to house foundation  Damage to well or septic system Obstacles & Challenges

 Negative publicity  Increased media coverage of industry  Environmental organizations  Landowner coalitions  Perpetuation of false information  Bad reputation  Frequent accusations of low-balling offers, using strong- arm tactics, and outright lying Obstacles & Challenges (continued)

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