February 29, 2000                                       Received 2/29/00  
11:30 am
                                                        Posted 2/29/00  11:30 
am

Dear Producers and Shippers,

 In January, you were notified that the Schultz Gas Processing Plant 
would be permanently shut down on February 29, 2000.   We heard from many 
of you regarding the financial hardship this shut down may cause Schultz 
area producers while a gas delivery alternative was being constructed.  
Given your concerns and given that natural gas liquids prices have risen 
sufficiently to allow operations at Schultz to be marginally profitable, 
CNG Transmission will continue to operate the Schultz facility until:

 1. it becomes uneconomic to continue operations or, 

 2. CNG develops a compression/pipeline alternative for delivering and
         processing the Schultz area gas elsewhere on its system. 

 We remain committed to serving producers throughout the Appalachian 
Basin and hope this operating decision addresses the concerns voiced by you.  
If you have any questions regarding this notice, please contact Joe Thompson 
at (304) 623-8709 or Dan Stuart at (304) 623-8705.


        Sincerely,


        H. Dale Rexrode
        Director, Producer Services
        and Business Development