Escondido Gas Storage, LLC Announces Non-Binding Open Season Package

HOUSTON, Jan. 9  /PRNewswire/ -- Escondido Gas Storage, LLC (Escondido) announces a non-binding open season for its proposed 18 Bcf working capacity Escondido Gas Storage Project, located approximately 55 miles southeast of San Antonio, Texas in Karnes and Live Oak Counties.  The open season for firm and interruptible storage service begins January 9, 2008 and continues through 5:00 pm CDT February 15, 2008.

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The Escondido Gas Storage Project will be constructed in the depleted Atkinson Gas Field and will initially have 18 Bcf of working capacity.  Design plans include an injection rate of 275 MMcf/d and a withdrawal rate of 335 MMcf/d, allowing 3 to 4 cycles per year.  Storage capacity could be expanded based on market interest.

The Escondido Gas Storage Project has been approved for development by the Texas Railroad Commission (TRC) and is planned to be in service by March, 2010.  Escondido will offer intrastate storage services pursuant to the rules and regulations of the TRC.  Pending the results of the open season, Escondido may also file a Section 311 Application with the Federal Energy Regulatory Commission to provide firm and interruptible storage service and interruptible hub services to interstate markets.

Potential pipeline connections for the Escondido Gas Storage Project include CPS Energy, Enterprise Texas Pipeline LLC, Gulf South Pipeline Company, Houston Pipe Line Company LP, Kinder Morgan Texas Pipeline, LLC, and Transcontinental Gas Pipeline Corporation (Transco).  Depending upon customer requirements, Escondido may offer interruptible hub service on its header system in addition to other potential pipeline connections.

Escondido is owned by Torch Energy Advisors Incorporated (TEAI), a privately held, Houston-based energy company.  Founded in 1981, TEAI has a long history of owning, operating and maximizing value from large energy-related projects. During its twenty-five year history, Torch has been directly responsible for the investment and management of over $3 billion in energy assets.

For additional information, please contact Ralph Carthrae, 713-756-1765,  or Mary Frances Deibert, 713-753-1428, . (http://www.escondidogasstorage.com/) 

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DATASOURCE: Escondido Gas Storage, LLC



CONTACT:  Ralph Carthrae, [phone], , or Mary

Frances Deibert, [phone], , both of Escondido Gas

Storage, LLC



Web site:  http://www.torchroyalty.com/ 

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