Updated: May 30, 2002, to accurately reflect volumes in Mcf

In just over one month the first phase of California Gas Transmission's Redwood path expansion will be placed in service.

The expansion capacity will be gained by adding two sections of pipe, totaling 14.1 miles, to CGT's northern backbone pipeline Line 401. The first pipeline addition is expected to be complete by July 1, 2002, bringing online 65,000 Mcf/d of firm expansion capacity. The second and final installation should be complete by mid-September, yielding an incremental 114,000 Mcf/d of firm capacity.

CGT sales representatives are now beginning discussions for the sale of both phases of Redwood expansion capacity, offering the following volumes:

Expansion capacity will not include any rights to extend the term into 2003 (the Gas Accord II period) as CGT expects to offer all expansion capacity in the open season discussed in the Gas Accord II Settlement.

Phone your CGT Sales Representative today to discuss expanding your Redwood path opportunities.