El Paso Announces Binding Open Season for Additional Capacity on

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Also posted today on El Paso's web site.
---------------------- Forwarded by Rebecca W Cantrell/HOU/ECT on 07/10/2001
02:14 PM ---------------------------

"Tracey Bradley" <tbradley@bracepatt.com< on 07/10/2001 02:10:18 PM
To: <jlimone@aeglobalmarkets.com<, "Charles Shoneman"
<cshoneman@bracepatt.com<, "Randall Rich" <rrich@bracepatt.com<,
<rreilley@coral-energy.com<, <Rebecca.W.Cantrell@enron.com<
cc:

Subject: El Paso Announces Binding Open Season for Additional Capacity on
Line 2000

FYI

Tuesday July 10, 9:21 am Eastern Time

Press Release
SOURCE: El Paso Corporation

El Paso Announces Binding Open Season for Additional Capacity on Line 2000

HOUSTON, July 10 /PRNewswire/ -- El Paso Natural Gas Company, a subsidiary of
El Paso Corporation (NYSE: EPG - news), announced today a binding open season
for 320 million cubic feet per day (MMcf/d) of pipeline capacity from the
Keystone and Waha areas of the Permian Basin in West Texas to the California
border near Ehrenberg, Arizona. The binding open season, which began July 5,
2001 and closes on August 2, 2001, is in response to the interest expressed
during El Paso's non-binding open season in March 2001 soliciting shippers
for potential system expansions.

The expansion capacity will be made available by adding compression to El
Paso's Line 2000 from McCamey, Texas to the California border near Ehrenberg,
Arizona. The expansion capacity will be sold at El Paso's existing maximum
California tariff rate, and the fuel charge is estimated to be 5 percent. The
projected in-service date of the expansion facilities is mid-2003 subject to
the receipt of all necessary regulatory, environmental, and right-of-way
authorizations.

The receipt points on El Paso's system for this capacity will be the Waha and
Keystone pools in the Permian Basin area of West Texas. The delivery points
will be Southern California Gas Company (SoCal) and PG&E's proposed North
Baja Pipeline, El Paso's bi-directional lateral (Line 1903), any future
incremental capacity on the SoCal system from Ehrenberg, Arizona into the
State of California, and any upstream points on El Paso's south mainline
system where capacity exists.

``This system expansion will add incremental interstate capacity to
California, Arizona, New Mexico, and West Texas to meet increasing natural
gas demands including the demand for natural gas to generate electricity for
the western United States,'' said Patricia A. Shelton, president of El Paso
Natural Gas Company.

Interested parties can contact their transportation marketing representative
or Mr. Jerry W. Strange at (719) 520-4687.

El Paso Corporation is committed to meeting energy needs throughout North
America and the world with operations that span the energy value chain from
wellhead to electron. The company is focused on speeding the development of
new technologies, such as clean coal and liquefied natural gas, to address
critical energy shortages across the globe. Visit El Paso at www.elpaso.com.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This release includes forward-looking statements and projections, made in
reliance on the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. The company has made every reasonable effort to ensure
that the information and assumptions on which these statements and
projections are based are current, reasonable, and complete. However, a
variety of factors could cause actual results to differ materially from the
projections, anticipated results or other expectations expressed in this
release. While the company makes these statements and projections in good
faith, neither the company nor its management can guarantee that the
anticipated future results will be achieved. Reference should be made to the
company's (and its affiliates') Securities and Exchange Commission filings
for additional important factors that may affect actual results.

SOURCE: El Paso Corporation