Williams Continues Working to Restore Operations

The company continues to receive reports of manageable damage regarding the extent of the hurricane's impact on Williams' onshore and offshore interests. Many operations, however, remain shut-in pending availability of inlet natural gas supplies from producers.

Williams' sites along the Gulf Coast continue to take actions to mobilize additional equipment, contractors and resources to assist with further surveys and inspections, especially at offshore facilities with underwater piping and infrastructure.

Personnel are also working closely with Williams' customers and third- party operators of the company's interests to coordinate survey efforts and to gather reliable information.

Williams also is focusing on providing emergency aid for hurricane victims. The company is sending $250,000 to the American Red Cross.

Natural Gas Transportation

The Transco and Gulfstream natural gas systems are fully operational and continue to transport available supplies of natural gas. There are no reports of significant damage to pipeline facilities associated with either transmission system.

Volumes on both the wholly owned Transco system and the 50 percent-owned Gulfstream system have gradually increased during the week as certain supplies came back online.

Onshore Natural Gas Processing

Power has been restored at the Mobile Bay, Ala., natural gas processing plant. No significant damage has been reported at the facility. The plant is available for service as inlet gas becomes more available and downstream natural gas liquids lines return to service. For now, the plant is able to deliver bypass gas into Gulfstream pipeline.

The Geismar, La., olefins production plant is scheduled to begin operations today at minimum production rates. The plant is able to operate using two of the three electrical feeders that have become active. Any production increases in subsequent days will be determined by the amount of ethane and propane feedstock that becomes available.

The company's natural gas processing plants near Cameron, La., and Markham, Texas, are in full operation.

Offshore Operations

Personnel have conducted visual and walk-through inspections at the Canyon Station fixed-leg platform in East Main Pass Block 261. Reports have not indicated significant damage, but the facility has not been re-manned yet. Further inspection will be required to assess the subsea infrastructure that supports the platform. Williams and its Canyon Station customers have coordinated a plan, along with a dive boat and a remotely operated vehicle, to conduct the subsea inspections.

Williams also has received favorable reports for the topsides at its Devils Tower deepwater spar at Mississippi Canyon block 773. This facility is owned by Williams and operated by Dominion Exploration & Production, an operating unit of Dominion. Dominion has reported only "minimal damage" at Devils Tower. Survey efforts at Devils Tower will now focus on inspecting the underwater infrastructure.

Next Steps

Williams expects to provide more information on its interests next week. Recovery efforts at affected locations in the Gulf Coast will continue throughout the holiday weekend.

Volunteers at several company locations are also organizing grassroots efforts to provide additional manpower and supplies for emergency relief.

Williams is encouraging its employees to utilize the company's matching gift program when making donations to qualified non-profit relief organizations.


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