Caledonia Energy Partners LLC Petition Federal Regulators to Construct and Operate Caledonia Storage Facility

Business Wire, Oct 27, 2004

DALLAS -- Caledonia Energy Partners LLC has petitioned the Federal Energy Regulatory Commission (FERC) to construct and operate the Caledonia Storage facility in northeast Mississippi. Nicor Enerchange LLC is serving as the marketing administrator for the Caledonia Storage Field.

The proposed facility, located in Monroe and Lowndes Counties in Mississippi, will have a direct interconnect with Tennessee Gas Pipeline. Upon approval from the FERC, the facility is expected to be in full operation by April 2006. With approximately 98 percent of the land under Gas Storage Agreements and key state certificates to construct and operate the facility already in place, in-service targets are very achievable.

The development provides more than 11 Bcf of available storage capacity with injection and withdrawal rates that create four cycles of flexibility. The Caledonia Storage Field is expected to provide shippers with flexible storage at competitive prices. The non-binding open season for firm storage capacity held from May 13, 2004 through June 25, 2004, identified substantial customer interest in this project.

"We're pleased after a very successful open season, we are now working toward final agreements with our prospective customers," said Jim Goetz, president, Caledonia Energy Partners LLC. "We look forward to obtaining FERC approval and to begin the construction and operation of this strategically located storage field."

For detailed information, potential customers are encouraged to visit the company's Web site, www.caledoniastorage.com, or call the following representatives:

About Caledonia Energy Partners

Caledonia Energy Partners is led by two industry veterans with combined experience of more than 50 years in the energy industry. Their primary business focus is on the exploration and production of natural gas and crude oil along with the development, installation and management of midstream assets.

About Nicor Enerchange LLC

Nicor Enerchange LLC consists of two separate divisions, Nicor Enerchange Trading and Nicor Enerchange Hub Administration. It is an affiliate of Nicor Inc. (NYSE:GAS), a holding company and member of the S&P 500 whose principals businesses are Nicor Gas, one of the nation's largest natural gas distribution companies, and Tropical Shipping, a containerized shipping business serving the Caribbean region. Nicor also owns and has an equity interest in several energy-related businesses. For more information, visit the Nicor Web site at www.nicor.com.