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Date: September 8, 2000

Gulfstream Natural Gas System Receives Draft Environmental Impact Statement From Federal Energy Regulatory Commission

HOUSTON – The Coastal Corporation announced today that its Gulfstream Natural Gas System, L.L.C., affiliate has received a comprehensive draft environmental impact statement (DEIS) from the Federal Energy Regulatory Commission (FERC) for its proposed new natural gas pipeline from Alabama across the Gulf of Mexico to Florida.

The DEIS is an assessment of the environmental impacts of the Gulfstream project by the staffs of the FERC and the Minerals Management Service (MMS) of the U.S. Department of Interior. The draft report will be circulated for comments to federal, state and local officials; agencies; and other interested parties. After comments are reviewed and considered, a final environmental impact statement will be issued.

Gulfstream anticipates that the entire approval process will be completed by February 2001.

"We’re pleased that the FERC and MMS continue their thorough analysis and timely actions for certification of the Gulfstream project," said Jeffrey A. Connelly, senior vice president, natural gas, of The Coastal Corporation. "While we continue to review the draft report, we look forward to receiving final approvals that would allow Gulfstream to begin construction and to deliver natural gas to its Florida customers."

Gulfstream has 10 large, nonaffiliated Florida utilities and power-generation facilities signed to long-term commitments for the majority of its 1.1 billion cubic feet of natural gas per day capacity. Gulfstream’s proposed 744-mile pipeline is designed to serve Florida utilities and power-generation facilities that plan on using high-efficiency, natural gas turbines to meet the incremental demand for electric energy. Florida officials project that the state will need an additional 25 percent of electric-generation capacity by 2007.

More information about the Gulfstream Natural Gas System is available by calling 1-888-GAS-4-FLA (1-888-427-4352).