National Fuel Files Petition with the Pennsylvania Public Utility Commission

    Company Believes New Mountain Vantage Has Not Complied with Utility Laws

    WILLIAMSVILLE, N.Y., November 8 /CNW/ - Today, National Fuel Gas
Distribution Corporation, the Utility segment of National Fuel Gas Company
(NYSE:   NFG) (the "Company" or "National Fuel"), filed a petition with the
Pennsylvania Public Utility Commission ("PUC") seeking the issuance of an
Order compelling New Mountain Vantage GP, L.L.C. ("New Mountain"), and others
acting in concert with New Mountain, to apply for and receive a certificate of
public convenience as related to the Company's Utility segment operations in
western Pennsylvania.

    National Fuel is an integrated energy company with five major business
segments, including a Utility segment with operations in western Pennsylvania.
The Company serves more than 200,000 customers in western Pennsylvania and has
provided safe and reliable natural gas service to its customers for more than
100 years. New Mountain, an activist shareholder, is advancing a business plan
for all of National Fuel's operating segments, including its Utility
operations, that, the Company believes, is not in the best interest of the
Company's Utility customers. The Company further believes that New Mountain is
required to have taken certain action with the PUC before it secured a
significant ownership position in the Company, advanced its business strategy
and presented a list of candidates it wishes to be elected to the Company's
Board of Directors.

    The Company, in its petition explains that Pennsylvania utility law
requires that if an entity is pursuing a controlling interest, either directly
or indirectly, in a regulated public utility, then it must first secure a
certificate of public convenience. Such a requirement, the Company believes,
is designed to give the public and regulatory agencies an opportunity to
determine if that entity will be qualified to manage the assets that deliver
energy to the citizens of Pennsylvania.

    "Pennsylvania utility law is designed to protect the best interests of
the hundreds of thousands of customers who rely on their local distribution
company, or utility, to provide them with the services they need, in a safe
and reliable fashion. We believe that New Mountain, in its zeal to advance a
business strategy rooted in its rather short-term interest in the Company, has
not followed the required procedures and should, before moving forward in its
stated objective, do so," said Philip C. Ackerman, Chairman and Chief
Executive Officer, National Fuel. The Company is requesting that the PUC
commence an investigation to assure that no violations of the Public Utility
Code have occurred.

    Since earlier this year, New Mountain has advanced a business strategy
for the Company that would, among other things, break up National Fuel's
integrated structure. The Company believes that such an action would have a
detrimental effect on its businesses, particularly if the end result were to
have the Utility segment as the remaining, sole substantial asset of the
Company. The Company's current structure provides certain efficiencies for the
Utility segment that, if lost, would be harmful and costly to its Utility

    The Company and New Mountain differ in opinion with regard to the value
and wisdom of its integrated structure and the very nature of some of the
Company's operations. In its materials, New Mountain has criticized the
Company for "approaching its E(xploration) and P(roduction) business from a
utility mindset." "It's unfortunate that New Mountain would perceive the
Company's track record for safe and reliable service and our ranking as one of
the top-ten energy companies in the U.S. as being a negative attribute. We
believe that our approach to running this Company provides our shareholders
with exceptional returns and all of our customers, the Utility-base included,
with outstanding service and an unparalleled level of experience and
expertise," Ackerman continued.

    National Fuel is an integrated energy company with $3.9 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 is available on its Internet Web site: or through its investor information service at

    (*)As published in Public Utilities Fortnightly, September 2007.

    Analyst Contact:                         James C. Welch (716) 857-6987
    Media Contact:                           Julie C. Cox (716) 857-7079

    National Fuel Gas Company (the "Company") and its directors and executive
officers may be deemed to be participants in the solicitation of proxies from
stockholders in connection with the Company's 2008 Annual Meeting of
Stockholders (the "Annual Meeting"). The Company plans to file a proxy
statement with the Securities and Exchange Commission (the "SEC") in
connection with this solicitation of proxies for the Annual Meeting (the "2008
Proxy Statement"). Information regarding the names of the Company's directors
and executive officers and their respective interests in the Company by
security holdings or otherwise is set forth in the Company's proxy statement
relating to the 2007 annual meeting of stockholders, which may be obtained
free of charge at the SEC's website at and the Company's
website at Additional information regarding
the interests of such potential participants will be included in the 2008
Proxy Statement and other relevant documents to be filed with the SEC in
connection with the Annual Meeting.

    Promptly after filing its definitive 2008 Proxy Statement for the Annual
Meeting with the SEC, the Company will mail the definitive 2008 Proxy
Statement and a proxy card to each stockholder entitled to vote at the Annual
IMPORTANT INFORMATION. Stockholders will be able to obtain, free of charge,
copies of the 2008 Proxy Statement and any other documents filed by the
Company with the SEC in connection with the Annual Meeting at the SEC's
website (, at the Company's website
( or by contacting Secretary, National Fuel Gas
Company, 6363 Main Street, Williamsville, New York 14221, (716) 857-7000.

For further information:

For further information: Members of the media, for additional
information: Julie Coppola Cox, 716-857-7079

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