New Storage and Transportation Contract

As you know, Bridgeline submitted an RFP to the top gas marketing and pipeline companies in North America requesting proposals on a package of bundled transportation and storage capacity. I am pleased to announce that as a result of that RFP, on Friday May 24th, Bridgeline executed definitive agreements with Duke Energy Trading and Marketing, LLC on a three year deal to provide storage and transportation services to be effective June 1, 2002. This contract, providing 135,000 dt/day of pipeline capacity and 2.25 bcf of storage capacity represents a substantial portion of the new storage and related transportation capacity associated with the new NS#1 storage cavern we are completing at Napoleonville this month. We are looking forward to the long-term relationship this contract will establish with such a prominent industry player as Duke.

I would like to congratulate Rich and Tiffany in generating and negotiating the terms of this deal and managing the whole RFP process, Georgia for her many hours in developing the appropriate contract language and Trevor in resolving the significant credit terms and many others in their support - all completed and coordinated on a very aggressive schedule. Now we must effectively move into the support and delivery of these services where all of Bridgeline will have significant impact. There will be several meetings scheduled shortly to roll out the details of the contracts to the various groups.

With the previously executed storage contracts recently negotiated with Oneok (1 bcf) and Cinergy (1.25 bcf), Bridgeline has made a quick jump on its 2002 storage plan. These new agreements will generate higher levels of transactions and service requests from term customers and a need for increased diligence, support and communication.

Thank you for all your efforts and commitment which will continue to drive Bridgeline's success.

Hugh H. Connett
Vice President Marketing and Gas Supply
Bridgeline Holdings, L.P.
Work: (832) 851-2803
Fax: (832) 851-2772
Hugh.Connett@bridgeline.net