Southern Star Announces Non-Binding Open Season for the Canadian Blackwell Expansion Project

OWENSBORO, Ky., Sept. 13, 2011 /PRNewswire/ -- Southern Star Central Gas Pipeline, Inc. (Southern Star) is pleased to announce the commencement of its Non-Binding Open Season for additional firm transportation capacity originating in western Oklahoma and the Texas Panhandle.  "Southern Star is geographically positioned to easily add incremental gas supply from the developing Granite Wash area in western Oklahoma and Texas. The Canadian Blackwell Expansion project will ultimately provide increased supply diversity for our customers and their markets at a competitive rate," said Philip Rullman, Vice President & Chief Commercial Services Officer.

The Canadian-Blackwell Expansion will involve expanding the capacity of Southern Star's system beginning in Hemphill County, Texas and Ellis County, Oklahoma along the Canadian Blackwell Line (Line Segment 458) extending east to its Blackwell Compressor Station, located in Kay County, Oklahoma.  This proposed expansion will serve the growing western Oklahoma & Texas production corridor including the Granite Wash, Cleveland/Tonkawa, and Mississippian areas with deliveries to markets in Oklahoma, Kansas, and Missouri as well as access to interconnects with other intrastate and interstate pipelines.

Southern Star is offering Firm Transportation Service in its Production Area (FTS-P) per its FERC Gas Tariff.  It anticipates that the Recourse Rate for this expansion will be its maximum Tariff FTS-P reservation and commodity rates, Production Area fuel, and any other FERC authorized surcharges.  The current FTS-P reservation rate is $0.1905 per Dth per day. If Southern Star receives sufficient interest in the proposed expansion through this Non-Binding Open Season, then a Binding Open Season will be conducted, and if successful, Southern Star anticipates service provided through the proposed expansion to begin the third quarter of 2013 or first quarter 2014.   Southern Star invites parties interested in firm transportation capacity on the Canadian Blackwell Expansion Project to submit non-binding bids by 4 p.m. CST on Thursday, October 13th, 2011.

Additional information regarding the project may be obtained by contacting Philip Rullman at (270) 852-4440, Jim Neukam at (270) 852-4665, or Pat Coomes at (270) 852-4552. Interested parties may access Open Season information at: http://csi.sscgp.com/ under the "Open Season Information" tab in the Informational Postings on CSI.

About Southern Star Central Corp.

Southern Star Central Corp., headquartered in Owensboro, Kentucky, owns Southern Star Central Gas Pipeline, Inc. an interstate natural gas transmission system spanning approximately 6,000 miles in the Midwest and Mid-continent regions of the United States.  Southern Star's pipeline facilities are located throughout Kansas, Oklahoma, Nebraska, Missouri, Wyoming, Colorado and Texas.  It serves major markets such as the Kansas City metropolitan area, Wichita, Kansas and the Joplin/Springfield, Missouri areas.

SOURCE Southern Star Central Gas Pipeline, Inc.

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