AGL Resources' Jefferson Island Storage & Hub Announces Preliminary Agreement Toward Expansion Plans


    ERATH, La., Aug. 19 /CNW/ -- AGL Resources (NYSE:   AGL) subsidiary
Jefferson Island Storage & Hub, LLC (JISH) has negotiated a tentative
agreement with the state of Louisiana that, subject to approval, would resolve
the pending lawsuit between the parties over a disputed mineral lease.

    A finalized agreement would enable Jefferson Island Storage & Hub to
resume its plan to expand the existing natural gas storage facility. This
tentative agreement was disclosed in an August 18 announcement of a public
hearing on the subject to be held by the state Department of Natural Resources
in Iberia Parish on September 24. The state Mineral Board must approve the
agreement in order for it to be valid, and a decision could come as early as
this fall. The parties also have jointly requested that the trial court delay
the pending September 28 trial date while the parties work through this
approval process.

    "To resolve the pending lawsuit, the state of Louisiana and JISH have
negotiated an operating agreement by which JISH will have the right to proceed
with its efforts to mine salt and create new natural gas storage caverns below
its existing surface lease," said Dana Grams, president, Jefferson Island
Storage & Hub, LLC.  "If the Mineral Board approves the settlement, we can
resume the permitting process to ensure that our project satisfies all
environmental, safety and other regulatory requirements."

    The JISH expansion is expected to result in significant economic benefits
to the state and local economy during construction and on a continuing basis
once the expansion is complete.

    Salt dome storage is considered the safest means of storing natural gas
by the U.S. Department of Energy, and there are more than 60 similar
facilities along the Gulf Coast. The two existing JISH caverns have operated
safely since 1994.

    Located near the Henry Hub, the nation's largest pricing point for
natural gas delivery, JISH currently consists of two salt dome storage caverns
with 7.5 billion cubic feet of working gas capacities, 720,000 MMbtu/day
withdrawal capacities and 360,000 MMbtu/day injection capacities. JISH
provides storage and hub services through direct connection to the Henry Hub
via the Sabine Pipeline and eight other pipelines: Texas Gas Transmission,
Columbia Gulf Transmission, Sea Robin Pipeline, Tennessee Gas Pipeline,
Trunkline Gas Company, Gulf South Pipeline, NGPL and CrossTex Energy Pipeline.

    About AGL Resources
    AGL Resources (NYSE:   AGL), an Atlanta-based energy services company,
serves approximately 2.3 million customers in six states. The company also
owns Houston-based Sequent Energy Management, an asset manager serving natural
gas wholesale customers throughout North America. As a current 70-percent
owner in the SouthStar partnership, AGL Resources markets natural gas to
consumers in Georgia under the Georgia Natural Gas brand. The company also
owns and operates Jefferson Island Storage & Hub, a high-deliverability
natural gas storage facility near the Henry Hub in Louisiana. For more
information, visit

    Forward-Looking Statements
    Certain expectations regarding the future expansion of the JISH existing
storage facility referenced in this press release are forward-looking
statements. Our expectations are not guarantees and are based on currently
available information. While we believe our expectations are reasonable in
view of currently available information, our expectations are subject to
future events, risks and uncertainties, and there are several factors - many
beyond our control - that could cause results to differ significantly from our
expectations. Such events, risks and uncertainties include, but are not
limited to, the approval process of the state of Louisiana's Mineral Board,
and changes and/or opposition to the preliminary settlement that the state of
Louisiana's Mineral Board may propose or express in response to the public
hearing to be held on the proposed settlement or otherwise; political
developments in Louisiana; the estimated economic benefits to Louisiana of the
Jefferson Island project; the impact of changes in state and/or federal
legislation and regulation; financial market conditions and general economic
conditions; uncertainties about environmental issues and the related impact of
such issues; and other factors that are provided in detail in our filings with
the Securities and Exchange Commission, which we incorporate by reference in
this press release. Forward-looking statements are only as of the date they
are made, and we do not undertake to update these statements to reflect
subsequent changes.


For further information:

For further information: Alan Chapple of AGL Resources, 24-Hour Media
Line: +1-866-757-6646, Office: +1-404-584-4095, Cell: +1-404-783-3011, Web Site:

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