Dominion Resumes Partial Production in the Gulf of Mexico

Dominion says that its Gulf of Mexico and South Louisiana production has reached approximately 130 million cubic feet of natural gas equivalent (mmcfe) per day.

Dominion facilities were not significantly damaged by the storms. Production capability of approximately 570 mmcfe per day is still shut-in primarily due to hurricane damage to downstream facilities not owned by Dominion.

Some Dominion facilities remain off line. At this time, Dominion is not able to forecast with certainty when off-line production, whether interrupted because of damage downstream or to its facilities, will resume.

Prior to Hurricane Katrina, Dominion's Gulf of Mexico and South Louisiana production was approximately 435 mmcfe per day. Dominion had forecasted production increases to approximately 700 mmcfe per day during October with the addition of four previously announced deepwater projects, plus other planned completion activity.

Dominion Daily Gulf of Mexico and South Louisiana Production Summary (mmcfe per day)

Prior to Hurricane Katrina 435

Prior to Hurricane Rita 240

Expected September Prior to Storms 525

Expected October Prior to Storms 700

All volumes are approximate.

Dominion has business interruption insurance for hurricane-related delays in natural gas and oil production. Production delayed by Hurricane Katrina has a 30-day deductible period. Production delayed by Hurricane Rita has a 45-day deductible period. Dominion's business interruption insurance covers delays caused both by damage to its own production facilities and by damage to third-party facilities downstream. Despite production delays caused by these hurricanes, the natural gas and oil reserves remain in the ground and are expected to be produced by Dominion in the future.

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