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Pipeline Project News

Andrew Emhof Facilities Engineer, Interstate Marketing

National Fuel Gas Supply Corp.

Empire Pipeline, Inc.

PIOGA Technical Conference

August 23, 2016

National Fuel Gas Company

• 2.3 Tcfe Proved Reserves (1)

• 785,000 net acres in Marcellus Shale

• 3 million Bbls/year of crude oil

production in California

• $1.2 billion midstream investments

since 2010

• Coordinated infrastructure build-out

in Appalachia with NFG Upstream

• 740,000 Utility customer accounts

Upstream

Midstream

Downstream

(1) Total proved reserves are as of September 30, 2015. 2

Interstate Marketing Facilities Planning

What do we do?

• Determine capacity through existing facilities

• Meter stations

• Compressor stations

• Pipeline segments and systems

• Evaluate and design expansion projects to create incremental capacity

• Act as liaison between Engineering, Gas Control, and Operations

• Manage and maintain all capacity postings

3

2015 Expansion Projects Enhancing Outlets for Production

2015 Expansion Projects

Westside

Expansion &

Modernization

West Side Expansion & Modernization

• Capacity: 175,000 Dth/d

• Market:

• Range Resources

• Seneca Resources

• Interconnects:

• Mercer (TGP Station 219)

• Holbrook (TETCO)

• Facilities:

• 3,550 HP of new compression

• 23.3 Miles of 24” replacement pipeline

• Placed into service: November 2015

Mercer

Holbrook

Delivery Point 5

West Side Expansion & Modernization

6

2015 Expansion Projects

Northern Access 2015

• Capacity: 140,000 Dth/d

• Market:

• Lease of Capacity to TGP

• Interconnects:

• Niagara (TCPL)

• Facilities:

• 15,400 HP of compression at Hinsdale CS

• 7,700 HP of compression at Concord CS

• Various M&R facilities

• Placed into service: December 2015

Northern

Access

2015

Clermont

Niagara

(TCPL)

Delivery Point

7

Northern Access 2015

8

Planned Future Expansion Projects Meeting the Demands of an Evolving Market

Future Expansion Projects

Line D Expansion

• Capacity: 77,500 Dth/d

• Market:

• Increased On-System Demand

• Transportation Path: Lamont (TGP 300 Line) to Erie, PA region

• Facilities:

• 4,140 HP of compression at new Keelor CS

• Lamont M&R Upgrades and station modifications

• Satisfied FERC Prior Notice Blanket Requirements in February

• Targeted in-service: April 2017

Delivery Point

Line D

Expansion Erie

North East

Lamont

Warren

10

Line D Expansion: Project Milestones

• Fall 2014: Open season held

• 77,500 Dth/d of capacity subscribed

• December 21, 2015: Applied for FERC Prior Notice Blanket Certificate

• February 26, 2016: Received FERC approval

• Summer 2016: Commence initial construction activities

• Keelor CS site development

• Complete pipeline MAOP remediation work

• Early Fall 2016: Anticipate PADEP Air Permit

• Fall 2016-Winter 2017: Anticipate construction of mechanical facilities

• Installation of new compressors at Keelor CS

• Finish Bowen and Lamont upgrades

• Commission new facilities

• April 1, 2017: Projected in-service date

11

Line D Expansion: Keelor CS Site Development

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Future Expansion Projects

Northern Access

• Capacity:

• 497,000 Dth/d on NFGSC

• 350,000 Dth/d on Empire

• Market:

• Seneca Resources

• Transportation Path: Seneca’s Clermont production area to TGP 200 Line and Chippawa (TCPL)

• Facilities:

• 99.0 Miles of 16” and 24” pipeline

• New 22,214 HP Pendleton CS

• Enhanced 5,350 HP Porterville CS

• Dehydration facility

• Various M&R facilities

• Targeted in-service: November 2017

Delivery Point

Northern

Access

Chippawa

(TCPL)

Clermont

TGP 200

Line

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Northern Access: Project Milestones

• Summer 2014: Open season held

• Capacity subscribed by foundation shipper

• Summer 2014-Winter 2015: Conducted environmental and engineering studies

• July 24, 2014: Began FERC Pre-filing process

• March 17, 2015: Submitted initial FERC 7(b)/7(c) applications

• Summer 2015-Winter 2016: Conduct right-of-way negotiations

• November 2, 2015: Submitted amended FERC 7(b)/7(c) applications

• Relocated Pendleton Compressor Station

• February 2016: Submitted NYS DEC 401 Water Quality Certification application

• July 27, 2016: Received FERC Environmental Assessment

• Late October 2016: Anticipate FERC certificate

• Early March 2017: Anticipate NYS Water Quality Certificate and air permits

• March 2017: Anticipate starting construction of facilities

• November 1, 2017: Projected in-service date

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Northern Access: FERC Environmental Assessment

• EA Issued July 27, 2016

• Based on FERC’s analysis, the Northern Access project would have no significant environmental impact

• NFG and Empire have developed comprehensive construction plan in its 7(c) application

• 69% of total pipeline route co-located with existing facilities

• FERC Staff proposed 26 recommendations, including:

• Modifications to plan must be submitted to and approved by Director of Office of Energy Projects

• Constructed facilities shall be as shown in EA

• Must have at least one Environmental Inspector per construction spread

• Must develop environmental complaint resolution procedure

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Northern Access: Porterville CS Engines

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Potential Future Expansion Projects Broadening Our Reach

Potential Future Expansions

To Iroquois

Line N to

REX

IGT

Line N to

Rover/Nexus

Empire

North

Extension

To

TCPL

Supply

North

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Potential Future Expansions

Empire North Expansion

• Open Season held Fall 2015

• Currently negotiating precedent agreements

Line N Expansion

• Replacement of remaining older-vintage pipeline, increasing System Maximum Operating Pressure

• Expand or develop new interconnections with other pipelines (Columbia, DTI, NEXUS, Rover, TETCO, TGP)

• Develop market-area delivery points

Production-related expansions

• Replacement/expansion of existing pipelines in Marcellus/Utica Shale fairway

• Development of new facilities for delivery to TGP, Transco, or Canada

Additional Capacity to TransCanada Pipeline

• Utilizing NFGSC corridors and facilities

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