Anadarko Natural Gas Pointed Northern Border

Northern Border Pipeline Company (Northern Border) today announced that it has signed a letter agreement with Anadarko Energy Services Company, a subsidiary of Anadarko Petroleum Corporation (NYSE: APC), subject to the approval of Anadarko's Board of Directors, outlining among other things terms to establish Anadarko as a foundation shipper on the proposed Bison Pipeline Project. Anadarko's commitment is for 250 million cubic feet of natural gas per day (MMcf/d) on the proposed project with a term of 10 years.

"We have enjoyed working with Anadarko to secure its participation in the proposed Bison Project, which will provide Anadarko with a new outlet to diverse markets for its Powder River Basin supply of natural gas," said Paul F. Miller, vice president and general manager of Northern Border. "This foundation shipper commitment with Anadarko represents over 60 percent of the expected project capacity and is a milestone toward obtaining the necessary shipper support to advance the project."

Brian Jeffries, executive director of the Wyoming Pipeline Authority (WPA) indicates that the WPA has believed for some time that additional pipeline capacity from Wyoming was needed. Bison, a proposed new interstate pipeline that originates in Wyoming and terminates in North Dakota, where it links to the Northern Border system will provide natural gas producers with access to a major downstream pipeline system with 2.4 billion cubic feet of capacity and thereby a wide range of pricing and market opportunities.

As previously announced, Northern Border's wholly owned subsidiary, Bison Pipeline LLC, is conducting a binding open season for potential shippers to request firm pipeline capacity on the proposed Bison Pipeline Project. As proposed in the open season documents, Bison will consist of approximately 289 miles of 24-inch pipeline, compression and appurtenant facilities beginning near Dead Horse, Wyoming, and the facilities of Fort Union Gas Gathering, L.L.C. and Bighorn Gas Gathering, L.L.C. The pipeline will extend in a northeasterly direction to its terminus in Morton County, North Dakota, near Northern Border's Compressor Station No. 6. It is anticipated that the initial capacity of Bison will be approximately 400 MMcf/d with a maximum capacity of 660 MMcf/d. The projected in-service date for Bison is Nov. 15, 2010.