EL Paso Natural Gas Company becomes part owner of TransColorado Gas Transmission Company

Business Wire, Sept 26, 1995

EL PASO, Texas--(BUSINESS WIRE)--Sept. 26, 1995--El Paso Natural Gas Company (NYSE:EPG) has purchased a one-third interest in the TransColorado Gas Transmission Company from Public Service Company of Colorado. KN Energy, Inc. and Questar Pipeline Company, also each own a one-third interest in TransColorado Gas Transmission Company.

In November 1994, TransColorado Gas Transmission Company accepted a Federal Energy Regulatory Commission certificate authorizing it to build a $194 million, 292 mile pipeline with a capacity of 300 million cubic feet per day which will run from northwest Colorado to the Blanco Hub Area in the San Juan Basin in northwest New Mexico. The proposed pipeline will interconnect in northwest Colorado with Rocky Mountain Natural Gas (a KN Energy, Inc. subsidiary), Questar Pipeline Company, Colorado Interstate Gas Company, and in the Blanco Hub Area with EPG, Transwestern Pipeline Company, and Gas Company of New Mexico. Construction of the pipeline has not yet begun.

"This project is a good strategic fit for El Paso," said William A. Wise, chairman, president and CEO of EPG. "Natural gas produced in the Rocky Mountain region will have an alternative outlet and an ability to flow into EPG for transportation to all markets that can be accessed off El Paso's system. These new volumes will allow us to maintain a high utilization for our system."

El Paso Natural Gas Company owns and operates one of the nation's largest field and mainline natural gas transmission systems, connecting natural gas supply regions in New Mexico, Texas, Oklahoma, and Colorado to markets in California, Nevada, Arizona, New Mexico, Texas and Mexico.

CONTACT: El Paso Natural Gas Company, El Paso

Norma F. Dunn, 915/541-5443