CENTRAL NEW YORK OIL AND GAS COMPANY, LLC

Date:    March 02, 2010

Time:    10:30 p.m.  

TO:      CNYOG Firm Storage Service (FSS) Shippers

 

Central New York Oil And Gas Company (CNYOG) announced an Open Season for firm wheeling 
service on its Stagecoach Storage North and South Laterals (“North-South Project”) on 
July 24, 2010.  On February 8th of this year, CNYOG received sufficient commitment to 
move forward with the North-South Project.  The North-South Project is targeted to be 
in-service on October 1, 2011. 

The North-South Project will provide firm wheeling service (FWS) on the North and South 
Laterals.  In order to effectuate this service, compression will be installed near the 
interconnect of the South Lateral and Tennessee Gas Pipeline in Bradford County, 
Pennsylvania, and the interconnect of the North Lateral and Millennium in Tioga County, 
New York. 

The North-South Project will not negatively affect Stagecoach’s Firm Storage Service (FSS).  

The North-South project will utilize any unsubscribed capacity on the North and South 
Laterals (once the project goes into service).   CNYOG is therefore providing its FSS 
shippers an opportunity increase their capacity on the North and / or South Laterals at 
the current reservation rates until March 11, 2010, up to the maximum capacity permitted 
under CNYOG’s tariff.  Under CNYOG’s tariff, FSS shippers are allowed to take capacity on 
both the North and South Laterals up to their Maximum Daily Withdrawal Quantity (MDWQ).  
Most FSS shippers are already taking capacity up to their MDWQ rights on the South Lateral. 

The current reservation rate being charged for the North Lateral is $1.86 / dth – month 
and for the South Lateral is $ 0.76 /dth – month. 

FSS shippers that intend to obtain additional capacity on the North and /or South Laterals 
should contact Ron Happach, Vice President of Commercial Operations,  at (720) 279 – 6344
and have their FSS Agreements amended prior to March 12, 2010.

CNYOG appreciates and values your business.