MID-ATLANTIC CONTINGENCY PLANNING GROUP

Meeting – May 7, 2003

The spring meeting of the Mid-Atlantic Contingency Planning Group was held at the Stonewall Resort in Roanoke, West Virginia. Chairman, P. Scott Murphy, called the meeting to order at 12:05 p.m.

The following attended the meeting:

Chairman: P. Scott Murphy (Washington Gas)

Vice Chairman: Gale Carovillano (Columbia TCO)

Secretary: Todd Smith (Roanoke Gas)

Others:

Winter Operations Summary

Most companies reported temperatures averaging (6%-10%) colder than normal. Peak day was generally January 23^rd. Columbia (TCO) reported that the total throughput for the season was 682 MMDth for an average of 4.5 MMDth per day. Columbia’s (TCO) throughput on January 23^rd was 7.3 MMDth. Columbia’s storage at the beginning of the season (Nov. 1^st) was 93.0% SCQ and ended with 17.5% SCQ. Dominion Transmission (DTI) reported a total throughput of 7.5 Bcf on January 23^rd. Dominion’s storage turnover for the season was 240 Bcf and an additional 100 Bcf for storage. Dominion’s storage started at 97% as of October 21^st and ended at 14% on March 16^th. Jody (DTI) said that the most notable differences between storage activities from a year ago were total inventory turnover and the lack of any warm periods in the winter to rest or reinject into storage pools. Columbia Gas of VA/MD storage began (November 1^st) at 93% & 94% respectively and ended at 14% & 11%. Baltimore reported their LNG at 20% and Propane at 10% in April. Storage was 14% in March. AGL/VNG reported using a satellite LNG tanker to supply 800 Mcfh during the peaking period in January. South New Jersey had the 10^th coldest winter since 1880. It’s peak day throughput was 423000 DTH and had a 3 day use record for January (21,22,23). Roanoke Gas reported that storage level at the end of the season was 12% with LNG at 50%. Washington Gas reported their storage level at the end of the season was 14%. They moved 1.4 Bcf (firm gas) on January 23^rd.

Forecast of Summer Operations/Storage

Duke Energy will need 127 days to fill their LNG, averaging 5000 Dth per day. Columbia (TCO) expects the firm storage customers to come in 95% to 97% of their SCQ this summer. Dominion (DTI) is expecting customers to use late season injections to fill storage due to current pricing. Dominion’s customers need to average 1.2 Bcfd to refill storage. Dominion is adding 2.75 Bcf storage capacity at Cove Point bringing its total capacity to 7.75 Bcf. Dominion plans on reactivating the import docks. Washington Gas reported aggressive storage injections as of April. Roanoke Gas reported LNG would start liquefying May 8^th. AGL/VNG said that they are seeking a waiver for a satellite LNG plant in Norfolk.

LDC’s/Marketers Effects of Unbundling

Baltimore Gas reported several marketers have dropped out of their program. This seems to be a trend among the group. Columbia MD/VA and South Jersey Gas reported that they are the suppliers of last resort when a marketer drops out. AGL reported that they redistribute customers to another marketer when the marketer drops out. Washington Gas reported 3 marketers went bankrupt.

Construction – Effects on Capacity

Duke Energy has one DOT (class change) project on the 3100 line downstream of Ridgetop compressor station. There will be a one-day tie in and will require the El Paso supply to be shut in for this period. They are also installing 5 loops on the 3300 line, 56 miles of 24” (1200 MAOP) pipe as part of the Patriot Project Phase 1. Tie-in is expected 8/21/03. An additional 95 miles of 24” (1200 MAOP) pipe will be installed by 10/21/03. A 10,310 Horsepower Solar Taurus 70 unit will be installed at the Rural Retreat Compressor Station by 10/30/03.

Columbia (TCO) said that construction is planned (September – October) for Line MC-30 in Maryland for class location change from Poolsville to Black Hills. Line SM-80 in West Virginia is scheduled for replacement at the Guyandotte River crossing and Geo-smart pigging from Scarlet Oaks to Lanham is planned (August – September). The Lanham Compressor Station is scheduled for work on the turbine engine starting in September. Approximately 100 miles of pipeline throughout Kentucky, West Virginia and Pennsylvania are scheduled to be pigged this summer.

Dominion Transmission (DTI) will tie in PL-1 to Cove Point in June for 5 to 6 days. PL-1 Chambersburg Station engine outage is scheduled for the month of September. PL-1 Leesburg Station engine outage is scheduled for the month of October. Dominion will be pigging approximately 500 miles of pipe this year.

Operator Qualification Status

Duke Energy qualified 16 controllers on September 2^nd. All Columbia (TCO) controllers completed the evaluation process prior to October 28^th. Due to the consolidation of TCO and Gulf into one Gas Control, 6 TCO controllers and 2 TCO chiefs were qualified for the Gulf system as well. Dominion reported all controllers have been OQ qualified. Columbia VA/MD reported all controllers have been OQ qualified. Washington Gas reported that they did not qualify their gas controllers. Tom Gibson shared a copy of the National Template Program Inspectors Guide with the group.

Customer Choice Program Status

Baltimore Gas said that it has 39% customer participation (Maryland and Virginia) in their customer choice program. Washington Gas has 35% participation.

Question was raised on whether to add DOT and FERC links to site. The need to update information in our written plan that is not on the Internet, more specifically the capacity holdings of the LDC’s. The possibility of adding password access to the website was discussed.