Business & Finance
Business and Finance
Business and Finance
Tue, December 16, 2008
Mon, December 15, 2008 
WILLIAMSVILLE, N.Y.--([ BUSINESS WIRE ])--National Fuel Gas Company's ("National Fuel" or "Company") (NYSE: NFG) wholly owned subsidiary, Empire Pipeline, Inc. ("Empire"), has placed its Empire Connector pipeline in service. The construction of the pipeline was completed earlier this month, however, certain weather-dependent restoration activities will continue.
"We are pleased to announce that this new pipeline has been brought into service," said David F. Smith, President and Chief Executive Officer of National Fuel. "The value represented by the location of our Pipeline and Storage assets and the growth opportunities this segment holds are well demonstrated with this project."
The Empire Connector Project expanded the 157-mile long Empire State Pipeline by about 77 miles. Project costs are estimated to be approximately $187 million. Extending from Victor, N.Y., to Corning, N.Y., the Empire Connector links the existing Empire State Pipeline that runs from an interconnection with TransCanada Pipeline near Buffalo, N.Y., to Syracuse, N.Y., to the Millennium Pipeline project. A 20,000 horsepower compressor station was built as part of the Empire Connector Project. The compressor station, located in Oakfield, N.Y., increases the pipeline's ability to deliver gas along the expanded pipeline system. The Empire Connector and Millennium Pipelines are part of a significant expansion project designed to bring energy supplies to the Northeast. Once completed later this month, these projects, along with the Algonquin Gas Transmission, LLC and Iroquois Gas Transmission System, L.P. expansion projects, will provide a total of 525,400 dekatherms per day (dth/d) of new natural gas supply to growing markets in the Northeast. These pipeline projects will allow natural gas to flow from increasingly important and substantial North American supply basins to markets in the Northeast – serving customers in central and western New York along the way.
The Empire Connector construction project is not only an important expansion of the infrastructure that provides natural gas service to hundreds of thousands of customers, it has also left a positive economic imprint on the communities along the route. The project created more than 800 jobs with approximately 420 full-time construction jobs, 70 percent of which were filled with workers from the region.
"The full economic impact of a project of this magnitude is difficult to quantify as the benefits are far-reaching. Dozens and dozens of workers took up residence in the project community during our two-year construction cycle and those who regularly traveled in and out the region were using local merchants on a daily basis. Our crews didn't just work in this area, they were in these communities full-time, renting housing and purchasing everything from construction materials to work boots and groceries," said Ronald C. Kraemer, President of Empire. "We are grateful for the tremendous cooperation and hospitality we received from the residents in the project area and continue our pledge to be a good neighbor to them for many, many years to come," Kraemer added.
Though the pipeline construction is now complete, property restoration will continue into the spring and summer of 2009. Additionally, Empire will continue to monitor previously restored land along the pipeline route until it has been restored to its original or better condition.
Should property owners have any questions regarding environmental mitigation or property restoration issues, they can contact Dick Miga, Manager, Land Department, at 1-800-404-5248, extension 7769 or the Project's Field Ombudsman, Jeff Grice, at 1-866-405-3394. During weekend hours, or in case of an emergency, please call 814-730-3585. Every attempt will be made to respond to all inquiries within 24 hours and, in all cases, a response will be offered within 72 hours.
National Fuel is an integrated energy company with $4.1 billion in assets comprised of the following five operating segments: Utility, Pipeline and Storage, Exploration and Production, Energy Marketing, and Timber. Additional information about National Fuel is available at [ http://www.nationalfuelgas.com ] or through its investor information service at 1-800-334-2188.
Certain statements contained herein, including those regarding estimated future earnings, and statements that are identified by the use of the words "anticipates," "estimates," "expects," "forecasts," "intends," "plans," "predicts," "projects," "believes," "seeks," "will," "may" and similar expressions, are "forward-looking statements" as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties, which could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. The Company's expectations, beliefs and projections contained herein are expressed in good faith and are believed to have a reasonable basis, but there can be no assurance that such expectations, beliefs or projections will result or be achieved or accomplished. In addition to other factors, the following are important factors that could cause actual results to differ materially from those discussed in the forward-looking statements: financial and economic conditions, including the availability of credit, and their effect on the Company's ability to obtain financing on acceptable terms for working capital, capital expenditures and other investments; occurrences affecting the Company's ability to obtain financing under credit lines or other credit facilities or through the issuance of commercial paper, other short-term notes or debt or equity securities, including any downgrades in the Company's credit ratings and changes in interest rates and other capital market conditions; changes in economic conditions, including global, national or regional recessions, and their effect on the demand for, and customers' ability to pay for, the Company's products and services; economic disruptions caused by terrorist activities, acts of war or major accidents; changes in actuarial assumptions, the interest rate environment and the return on assets for the Company's retirement plan and post-retirement benefit plans, which can affect future funding obligations and costs and plan liabilities; changes in demographic patterns and weather conditions, including the occurrence of severe weather such as hurricanes; changes in the availability and/or price of natural gas or oil and the effect of such changes on the accounting treatment of derivative financial instruments or the valuation of the Company's natural gas and oil reserves; uncertainty of oil and natural gas reserve estimates; ability to successfully identify, drill for and produce economically viable natural gas and oil reserves, including shortages, delays or unavailability of equipment and services required in drilling operations; significant changes from expectations in the Company's actual production levels for natural gas or oil; changes in the availability and/or price of derivative financial instruments; changes in the price differentials between various types of oil; inability to obtain new customers or retain existing ones; significant changes in competitive factors affecting the Company; changes in laws and regulations to which the Company is subject, including tax, environmental, safety and employment laws and regulations; governmental/regulatory actions, initiatives and proceedings, including those involving acquisitions, financings, rate cases (which address, among other things, allowed rates of return, rate design and retained natural gas), affiliate relationships, industry structure, franchise renewal, and environmental/safety requirements; unanticipated impacts of restructuring initiatives in the natural gas and electric industries; significant changes from expectations in actual capital expenditures and operating expenses and unanticipated project delays or changes in project costs or plans; the nature and projected profitability of pending and potential projects and other investments, and the ability to obtain necessary governmental approvals and permits; ability to successfully identify and finance acquisitions or other investments and ability to operate and integrate existing and any subsequently acquired business or properties; impairments under the Securities and Exchange Commission's full cost ceiling test for natural gas and oil reserves; changes in the market price of timber and the impact such changes might have on the types and quantity of timber harvested by the Company; significant changes in tax rates or policies or in rates of inflation or interest; significant changes in the Company's relationship with its employees or contractors and the potential adverse effects if labor disputes, grievances or shortages were to occur; changes in accounting principles or the application of such principles to the Company; the cost and effects of legal and administrative claims against the Company or activist shareholder campaigns to effect changes at the Company; increasing health care costs and the resulting effect on health insurance premiums and on the obligation to provide post-retirement benefits; or increasing costs of insurance, changes in coverage and the ability to obtain insurance. The Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.
