REQUEST FOR SERVICE FOR FIRM GAS STORAGE CAPACITY

Floridian Natural Gas Storage Company, LLC ("FGS") is accepting requests for service from interested parties for firm storage service at its proposed natural gas storage facility near Indiantown in Martin County, Florida. The FGS Facility, at which FGS will receive natural gas for liquefaction, storage, vaporization and redelivery, will provide interconnections to both Florida Gas Transmission Company and Gulfstream Natural Gas System, L.L.C. The FGS Facility will comprise two storage tanks, each with a storage capacity of 4,000,000 Dt. FGS will construct the first tank in phase 1 of Facility development. FGS will construct the second tank in phase 2 of Facility development or, if contractual commitments support it, in phase 1 at the same time it constructs the first tank. The proposed in-service date is May 2011.

FGS plans to file its application for a certificate of public convenience and necessity under Section 7(c) of the Natural Gas Act, with the Federal Energy Regulatory Commission in July 2007. FERC initiated the pre-filing process for FGS on January 10, 2007 (FERC Docket No. PF07-3-000). As part of its application, FGS will request authority to charge market-based rates for all proposed storage services at the Facility.

As of March 9, 2007, our initial open season has closed. The development of the project is proceeding. Additional requests for service are currently being accepted. Interested parties are encouraged to submit service requests to FGS (in the form available here) for all or any part of the available capacity in accordance with the following:

Type of Service: Firm Storage Service

Minimum Term of Service: 180 months

Maximum Storage Quantity (MSQ):
Minimum Bid: 250,000 Dt
Maximum Bid: 8,000,000 Dt

Maximum Daily Liquefaction Quantity:
Maximum Bid: 50,000 Dt*

Maximum Daily Vaporization Quantity:
Maximum Bid: 400,000 Dt*

*Maximum bid is based upon a phase 1 construction of the first tank only. In that event, each Customer's Maximum Daily Liquefaction Quantity and Maximum Daily Vaporization Quantity will be its pro rata share of the total daily liquefaction or vaporization capacities available on any day, which capacities will not exceed 50,000 Dt per day and 400,000 Dt per day, respectively. If submitted bids support construction of the second tank in phase 1, FGS will evaluate the total daily liquefaction or vaporization capacities which may be available on any day and engage in discussions regarding the same with the successful bidders.

Storage Charge: $/Dt of MSQ/day as bid by Customer

Fuel Reimbursement (in kind) and Electric Reimbursement Charge ($/Dt tendered for liquefaction) to be determined in accordance with FGS's pro forma FERC Gas Tariff

Points of Receipt and Points of Delivery: Interconnection of FGS Facility and Florida Gas Transmission Company

Interconnection of FGS Facility and Gulfstream Natural Gas System, L.C.C.

The bid form must be completed in its entirety to be considered. FGS will rank bid proposals according to net present value, with consideration given, in FGS's sole discretion, to both the prospective customer's creditworthiness and its operational flexibility and contractual arrangements with transporters. FGS reserves the right to reject, in its sole discretion, any bid not acceptable to FGS.

By submitting a completed bid form, the prospective Customer will be expressing a non-binding interest in entering a precedent agreement with FGS for firm storage capacity based on the specific commitments and terms set forth in the submitted bid form. FGS will enter into discussions with successful bidders with the objective of negotiating commercially reasonable terms resulting in the execution of binding precedent agreements with successful bidders as soon as possible after the conclusion of the open season. No contract will exist between the bidder and FGS until a definitive precedent agreement to a service agreement for firm storage service has been executed by both parties.

Additional information is available, including the Pro Forma FGS FERC Gas Tariff (PDF) and a Pro Forma Precedent Agreement (PDF).

For further information please contact David Sharp at 800-621-6843, Nicole@floridiangasstorage.com.