CHICAGO MARKET EXPANSION PROJECT PHASE 2 NOTICE OF NON-BINDING SOLICITATION OF INTEREST CMEP PHASE 1 UPDATE

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1 CMEP PHASE 1 UPDATE Natural Gas Pipeline Company of America LLC (NGPL) is pleased to announce its acceptance of the FERC Certificate Order issued March 17, 2016 in Docket No. CP , as filed June 1, 2015, authorizing the construction and operation of facilities required for NGPL's Chicago Market Expansion Project (CMEP). This Phase 1 of CMEP involves construction of a new intermediate Compressor Station 312 located on NGPL s Gulf Coast Mainline system in Livingston County, IL that increases NGPL s northbound capacity by 238,000 dekatherms per day (Dth/d) to provide incremental firm transportation service to markets in Chicago, Illinois and surrounding areas. The shippers anchoring CMEP Phase 1 include local distribution companies, producer and marketing companies. The contracts entered into by these shippers demonstrate the long term, broad appeal of the project with an average firm transportation term of over 11 years. NGPL s Implementation Plan and Notice to Proceed were filed and approved by the FERC and construction commenced in April The Project s completion date is expected to be November 1, This phase of the expansion project meets the current natural gas transportation needs of the Chicago-area markets and Marcellus/Utica producers by providing reliable and flexible service and competitive rates to the Chicago area, said NGPL President David Devine. We continue to have the ability to provide additional capacity northbound, as well as southbound to Gulf Coast markets, with further cost-effective expansions. Today, NGPL announces it is seeking non-binding solicitations of interest for a second phase of CMEP, as further discussed below. Those interested in obtaining more detailed information about this Project should contact Frank Strong, director of Business Development for NGPL, at CMEP@kindermorgan.com or (630) , or visit the Kinder Morgan web site at In addition, in a concurrent posting on our web site, NGPL announces Phase 2 of its Gulf Coast Southbound Expansion Project to Texas and Louisiana Gulf Coast and Mexico markets. Those interested in obtaining more detailed information about that project should contact Jason Sweeney, director of Business Development for NGPL, at jason_sweeney@kindermorgan.com or (713) , or visit the Kinder Morgan web site at Contacts: Kinder Morgan, Inc. Media Relations Sara Hughes, (713) sara_hughes@kindermorgan.com Investor Relations (713) km_ir@kindermorgan.com CMEP PHASE 2 NGPL is soliciting interest in a Phase 2 northbound expansion of its Gulf Coast mainline system ( Gulf Coast Line ). This will entail construction of additional compression facilities at its Station 312 currently under construction in Livingston County, IL. Phase 2 of the Chicago Market Expansion Project ( CMEP Phase 2 Project ) will provide for 200,000 Dth/d of incremental firm transportation service to markets in the Chicago area from the existing REX Moultrie and PEPL interconnects in Moultrie County, IL, or such other receipt points as mutually agreed upon between the parties. This announcement provides a description of the CMEP Phase 2 Project, applicable terms and conditions for non-binding bids and other relevant details to participate in this project. Increasing gas production from the Utica and Marcellus Shales region, combined with unique access to markets in Chicago, Joliet and northwest Indiana, make the CMEP Phase 2 Project the most affordable and economic choice to meet the needs of producers, local distribution companies, marketers and end use customers. NGPL s system, with over 5.5 Bcf/day of pipeline and storage deliverability, can provide access to numerous market area delivery points through existing and expansion capacity. May 10, 2016 Page 1

2 About NGPL: NGPL is one of the largest interstate pipeline systems in the country, with approximately 9,200 miles of pipelines, more than 1 million horsepower of compression facilities and 288 Bcf of working gas storage. Shippers on the CMEP will have primary or secondary delivery access to other Midwest markets and highly liquid pooling points for exceptional optionality. In addition, selection of the System-Wide rate option enables Shippers to source gas from eight (8) different receipt zones and deliver gas to six (6) delivery zones throughout the NGPL system on a secondary basis. NGPL s storage and balancing services can also enhance a Shipper s flexibility. As the largest transporter of natural gas to the greater Chicago market, NGPL s interconnectivity with the LDC marketplace provides Shippers major benefits, including superior market optionality and supply diversity. NGPL s principal Market Delivery Zone provides access to markets in Illinois, Indiana and Iowa, and serves additional markets in parts of Arkansas, Kansas, Missouri, Nebraska and Wisconsin. As depicted below, NGPL s critical interconnectivity with major LDCs provides a competitive advantage with over 200 physical LDC interconnects and 21.5 Bcf/d in delivery point capacities. May 10, 2016 Page 2

3 Description of the CMEP Phase 2 Project: The targeted in-service date for Phase 2 will be determined based upon Shippers needs as provided during the solicitation process. The CMEP Phase 2 Project is anticipated to include the installation of additional compression facilities at its Station 312 currently under construction in Livingston County, Illinois on NGPL s Gulf Coast Line. NGPL expects to be able to provide incremental northbound firm transportation capacity of 200,000 Dth/d to markets in and near Chicago, IL. NGPL s Market Delivery Zone includes numerous existing interconnects with major LDC s including Nicor Gas, Peoples Gas Light & Coke, North Shore, Ameren, and Northern Indiana Public Service Company, Horizon Pipeline Company, Kinder Morgan Illinois, other interstate pipelines, direct connect power plants and industrial end use customers. NGPL s Market Delivery Zone also extends to eastern Nebraska and Arkansas. The Project can source supplies and provide direct access to numerous existing and/or proposed new receipt points along this corridor, including the NGPL/REX Moultrie interconnect with a point capacity of 1,750,000 Dth/day. Non-Binding Bid Requirements: Parties interested in obtaining firm transportation capacity should submit a completed Non-Binding Bid Form attached as Exhibit A. Bids shall not become binding until incorporated into mutually agreed upon definitive agreements. Bids will be treated as confidential and shall not be disclosed, except as authorized by the bidder or required by applicable law or regulation. A Non-Binding Bid Form must include the following information: Negotiated or Maximum Recourse Reservation Rate o with or without the system-wide rights option Maximum Daily Quantity ( MDQ ) Primary Receipt Point(s), including the specified MDQ for the requested points Primary Delivery Point(s), including the specified MDQ for the requested points Contract Start Date and Contract End Date Contract term must be at least ten (10) years Credit Application. Bid Options: To meet its preliminary economic criteria, NGPL expects that a minimum term of 10 years and a rate of at least $ per Dth per Month ($0.16 per Dth per day) will be required. Parties will have the ability to submit either a Fixed Negotiated Rate bid or a maximum Recourse Rate bid, as provided below. Bidding for the System-wide rights option will enable the Shipper to also source and deliver gas throughout NGPL s system on a secondary basis given point and segment capacity availability. A Recourse Rate bid will provide that the rates are subject to change during the term of the FTS Agreement. The current Recourse Tariff Reservation Peak and Off-Peak rates under Rate Schedule FTS (per month and per unit), with and without system-wide rights, are shown below. Currently Effective Max. Peak and Off-Peak Recourse Rates (FTS) Market Delivery Zone Receipt Zone FTS Peak FTS Off-Peak Annualized Iowa-Illinois Reservation $ $ $ per Unit $ $ $ inclusive of system-wide rights option (FTS-SW) Reservation $ $ $ per Unit $ $ $ May 10, 2016 Page 3

4 Alternatively, Shipper may submit a Fixed Negotiated Rate bid that provides the Shipper with rate certainty throughout the term of the agreement. The Fixed Negotiated Rate structure provides the Shipper with reservation rate certainty with no rate change due to any future NGPL FERC rate proceeding. For rate certainty and maximum market flexibility throughout the term of the agreement, parties are encouraged to bid Negotiated Rates for service on the CMEP Phase 2 Project, with the system-wide rights option (FTS-SW). In addition to the Reservation charge, Shippers shall also be charged a commodity rate based on usage, Annual Charge Adjustment (ACA), a fuel gas and gas lost and unaccounted for charge and any additional surcharges that are in effect pursuant to its NGPL s FERC Gas Tariff, as may be revised from time to time. Receipt and Delivery Points: The CMEP Phase 2 Project provides for firm transportation from primary receipts at the REX Moultrie receipt point (NGPL Pin # 44413), PEPL receipt point (NGPL Pin #906103) or at other existing or proposed new receipt points in the area. These northbound flows will be delivered to points on the NGPL system in Segments 28, 30, 31, 32, 33, 34, and 36 of its Market Delivery Zone, if unsubscribed capacity is available at the time of Precedent Agreement execution. Available delivery points with unsubscribed capacity can be found on NGPL s website for the referenced segments. NGPL will work with parties to identify mutually agreeable points of receipt and delivery. Parties may request new receipt or delivery points by providing specific (i.e., latitude and longitude) or general location descriptions in their bids. Such additional facilities may require reimbursement by the party in advance of construction. Credit Requirements: Prior to execution of the definitive agreements, Shippers will be required to demonstrate creditworthiness or provide a credit assurance alternative acceptable to NGPL in accordance with its FERC Gas Tariff. Contact List: Interested parties should send their bids via to: CMEP@kindermorgan.com. Bids may also be sent by mail or FAX to NGPL s offices to the attention of Frank Strong, 3250 Lacey Road, Suite 700, Downers Grove, Illinois or facsimile number (303) NGPL welcomes your interest in our CMEP Phase 2 Project to build upon the successful CMEP Phase 1. Please contact any of the following individuals with your comments or questions concerning this announcement. Frank Strong: Phone: (630) ; frank_strong@kindermorgan.com Donette Bisett: Phone: (713) ; donette_bisett@kindermorgan.com David Weeks: Phone: (630) ; david_weeks@kindermorgan.com Any updated information will be posted online at May 10, 2016 Page 4

5 EXHIBIT A NON-BINDING SOLICITATION OF INTEREST BID FORM A. Shipper Name: B. Contract Start Date: C. Contract End Date: (to be extended should in-service be delayed) D. Maximum Daily Quantity (MDQ): (Dth/d) E. Reservation Rate: ($ per Dth per month) Fixed Negotiated Rate or Recourse Rate Does Reservation Rate include System-wide service option: Yes No F. Primary Receipt/Delivery Point Information: Name/Location County State PIN No. MDQ (Dth/d) PRIMARY RECEIPT POINT: REX Moultrie Moultrie IL #44413 PRIMARY DELIVERY POINT(S): TOTAL PROPOSED NEW PRIMARY RECEIPT/DELIVERY POINT(S): Receipt Location: Latitude Longitude Delivery Location: Latitude Longitude G. Credit Application Acknowledged and Submitted: Yes No By: Print Name: Title: Phone: Address: May 10, 2016 Page 5