Empire Connector Pipeline Project Moving Forward

    Construction to Begin in Mid-September 2007

    WILLIAMSVILLE, N.Y., August 6 /CNW/ - National Fuel Gas Company's
("National Fuel" or "Company") (NYSE:   NFG) wholly owned subsidiary, Empire
State Pipeline ("Empire"), has reached major milestones and is on schedule for
its pipeline expansion project, the Empire Connector, to be completed and in
service in the fall of 2008. Recent project developments include: the
execution of a service agreement with a KeySpan Energy Corp. company for more
than 60% of the pipeline's capacity; contracting for the pipeline and
compressor station equipment; engaging Otis Eastern Service, Incorporated as
its pipeline construction contractor; and finalizing the project's
construction schedule, with approximately 20 to 25 miles of pipeline
construction slated for this year.

    "We are pleased to see the next phases of this project coming to
fruition," said David F. Smith, President and Chief Operating Officer of
National Fuel Gas Company and President of Empire State Pipeline. "For more
than four years, we have worked diligently with landowners, representatives
from environmental agencies, agricultural specialists and legislators to move
this project forward. Reaching this juncture would not have been possible
without the cooperation of those affected by this important project,
particularly the landowners along the pipeline route, who helped us develop a
solid plan for this project. We are grateful for their input and look forward
to the value this new infrastructure will bring to both New York State and
National Fuel.(*)"

    The Empire Connector Project will expand the 157-mile long Empire State
Pipeline by about 77 miles. Project costs are estimated to be approximately
$177 million. Extending from Victor, N.Y., to Corning, N.Y., the Empire
Connector will link the existing Empire State Pipeline that runs from near
Buffalo, N.Y., to Syracuse, N.Y., to the Millennium Pipeline project. One
compressor station will be built as part of the Empire Connector Project. The
compressor station will be located in Oakfield, N.Y., and will increase the
pipeline's ability to deliver gas along the expanded pipeline system. The
Empire Connector and the Millennium Pipelines are part of a significant
expansion project designed to bring much-needed energy supplies to the
Northeast. Once completed, these projects, along with the Algonquin Gas
Transmission, LLC and Iroquois Gas Transmission System, L.P. expansion
projects, will provide 525,400 dekatherms per day (dth/d) of new natural gas
supply to growing markets in the Northeast.(*) When these pipeline projects are
completed, natural gas will flow from increasingly important and substantial
North American supply basins to markets in the Northeast - serving customers
in central and western New York along the way.(*)

    Earlier this summer, a subsidiary of KeySpan Energy Corp. (NYSE:   KSE),
the largest distributor of natural gas in the Northeast, executed its firm
transportation service agreement with Empire, providing for at least ten years
of 150,750 dth/d of natural gas transportation service on the Empire State
Pipeline, including the Empire Connector facilities.(*) KeySpan, which serves
more than 2.5 million gas customers in the Northeast, is also New York's
largest investor-owned electric generator and operates the Long Island Power
Authority electric system serving 1.1 million customers. Empire is now
actively marketing the remaining capacity that will be created by the Empire

    "We are literally at the stage where all of the pieces to this project
are coming together. Securing the materials and resources needed to construct
energy infrastructure at a time in our industry when such things are at a
premium is a significant milestone to reach. Right now, the pipe we'll use is
being manufactured in Baton Rouge, Louisiana and the compressor equipment is
being manufactured in San Diego, California," said Ronald C. Kraemer, Vice
President, Empire State Pipeline. These components alone represent more than
$30 million of the total project cost.

    In another significant project development, Empire has engaged
Wellsville, N.Y.,-based Otis Eastern Service, Incorporated as the construction
contractor for the pipeline project. "We are pleased to be working with a
local pipeline contractor with the capability and reputation to schedule and
manage projects in a safe and timely manner. Otis Eastern has demonstrated
experience in successfully completing pipeline construction projects
throughout New York State, through all types of terrain, including
agricultural lands, and in doing so with the utmost respect for the local
natural resources" said Kraemer.

    Representatives from Empire will continue to work directly with
landowners and affected parties along the pipeline route at the beginning of,
and throughout, the construction process. The first phase of pipeline
construction is scheduled to begin in mid-September in Yates and Schuyler
Counties, with 20 to 25 miles of construction being planned for completion by
early December. The rest of the pipeline route, including the compressor
station, will be constructed in 2008. Those who own property in the area
identified for construction this year will be contacted by a representative
from Empire and will have an opportunity to meet with the project team in
advance of the start of construction.

    National Fuel Gas Company is an integrated energy company with $3.8
billion in assets comprised of the following five operating segments: Utility,
Pipeline and Storage, Exploration and Production, Energy Marketing, and
Timber. Additional information about National Fuel Gas Company is available on
its Internet Web site: www.nationalfuelgas.com or through its investor
information service at 1-800-334-2188. For more information about the Empire
Connector, visit the project's Web site at www.empireconnector.com.

    (*) - Certain statements contained herein, including statements concerning
plans, objectives, goals, projections, strategies and future events or
performance, statements which are designated with an asterisk ("(*)"), and
statements which are identified by use of the words "anticipates,"
"estimates," "expects," "intends," "plans," "predicts," "projects," and
similar expressions, are "forward-looking statements" as defined by the
Private Securities Litigation Reform Act of 1995. Forward-looking statements
involve risks and uncertainties which could cause actual results or outcomes
to differ materially from those expressed in such statements. The Company's
expectations, beliefs and projections contained herein are expressed in good
faith and are believed to have a reasonable basis, but there can be no
assurance that such expectations, beliefs or projections will result or be
achieved or accomplished. In addition to other factors, the following are
important factors that could cause actual results to differ materially from
those discussed in the forward-looking statements: changes in economic
conditions, including economic disruptions caused by terrorist activities,
acts of war or major accidents; changes in demographic patterns or weather
conditions, including the occurrence of severe weather; changes in the
availability and/or price of natural gas, oil and coal; inability to obtain or
retain sufficient customers for the proposed Empire Connector; changes in the
plans of the sponsors of the proposed Millennium Pipeline with respect to that
project; significant changes in competitive factors affecting the Company;
governmental/regulatory actions, initiatives and proceedings, including the
FERC's consideration of the proposed Empire Connector, and other federal,
state or local actions, initiatives or proceedings affecting acquisitions,
financings, allowed rates of return, affiliate relationships, industry and
rate structure, franchise renewal, and environmental/safety requirements;
unanticipated impacts of restructuring initiatives in the natural gas and
electric industries; significant changes from expectations in actual capital
expenditures and operating expenses and unanticipated project delays or
changes in project costs; significant changes in the projected profitability
of pending and potential projects, including the proposed Empire Connector;
occurrences affecting the Company's ability to obtain funds from operations or
the issuance of debt or equity securities to finance needed capital
expenditures and other investments; significant changes in the Company's
relationship with its employees and contractors and the potential adverse
effects if labor disputes, grievances or shortages were to occur; changes in
laws and regulations to which the Company is subject, including tax,
environmental, safety and employment laws and regulations; or the cost and
effects of legal and administrative claims against the Company. The Company
disclaims any obligation to update any forward-looking statements to reflect
events or circumstances after the date hereof or to reflect the occurrence of
unanticipated events.

For further information:

For further information: National Fuel Gas Company Media: Julie C. Cox,
716-857-7079 Analyst: James M. Welch, 716-857-6987

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