Columbia Gas Transmission Corp. plans to create a new gas storage company, Hardy Storage Company LLC, to offer firm and interruptible storage services from a proposed 12.4 Bcf gas storage field in Hardy and Hampshire Counties, WV.

Columbia said it would operate the new facilities and is conducting an open season on behalf of the new venture.

The new storage facility will be connected to Columbia’s pipeline system near the Lost River compressor station. Hardy Storage is expected to file an application with FERC in the first quarter of 2005 to build the storage field and it will have to make a tariff filing describing the storage services and proposed rates. An open season for storage service started Feb. 25, 2004 and will end March 9.

The new storage field will have a working gas capacity of about 12.4 Bcf and a peak daily deliverability of 176,000 Dth. Gas will be injected and withdrawn throughout the year. The field is expected to be in service in April 2007.

The minimum contract term for service will be 15 years, Columbia said. When fully activated and in service, the expected rates include a reservation charge between $3.694/Dth/d and $4.294/Dth/d, a demand charge of $0.053/Dth to $0.061/Dth and an injection/withdrawal charge of $0.009 plus applicable fuel retention and surcharges.

For additional information contact Michael J. Strauss at (703) 227-3364 or mjstrauss@nisource.com.

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