Coral Energy became the principal gas supplier to LDCMountaineer Gas Co. through an agreement giving Coral management ofvirtually all of Mountaineer’s total firm transportation andstorage entitlements. Effective Nov. 1, Coral will begin supplyingMountaineer, West Virginia’s largest LDC, about 25 Bcf/year forthree years. Gas will be supplied at a fixed price. Local gassupplies are not part of the deal and will continue to be managedby Mountaineer.

The contract follows a Mountaineer rate case settlement with theWest Virginia Public Service Commission that fixed the price ofMountaineer’s sales for the next three years. Coral is using itsrisk management abilities to provide the fixed price. Services willinclude management of Mountaineer’s interstate transportation andstorage entitlements on the Columbia Gas, Columbia Gulf andTennessee Gas pipeline systems. Coral and Mountaineer willcapitalize on the LDC’s local presence and Coral’s physical supplyand financial capabilities.

“Mountaineer and Coral have a history of working well together,and we recognize the benefits of expanding our working relationshipin the future,” said Mike Fletcher, Mountaineer president. “Coralprovided the fixed price that we needed to lock in a price for ourresidential and small commercial customers over the next threeyears. In addition, our new supply partnership with Coral enhancesthe capabilities to provide expanded services by both companies inthe future.”

Mountaineer is a wholly owned subsidiary of Energy Corporationof America. The company has headquarters in Charleston, WV andserves about 200,000 customers.

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