Williams Provides Update on Gulf Operations

Williams provides an update on its operations in areas affected last week by Hurricane Ivan.

Natural Gas Transportation
Throughput has returned to substantially normal levels on Williams' wholly-owned Transco natural gas pipeline system.

Another pipeline, Gulfstream, in which Williams has a 50-percent interest, is beginning to see supplies of offshore production reinstated. Gulfstream expects the offshore volumes to improve over the next several days. The pipeline has been meeting customer demand with supplies from storage and other alternate onshore sources.

Offshore Operations
Williams is using remotely operated vehicles to conduct underwater surveys at its Canyon Station and Devils Tower platforms.

As of Sunday, the review at Canyon Station was approximately 40 percent complete. Canyon Station is a fixed-leg platform in 300 feet of water in East Main Pass Block 261 in Mobile Bay. Initial results have not indicated any damage below the water's surface. Above the water line, the platform only sustained minor damage to items such as hand rails that were bent during Hurricane Ivan.

At Devils Tower, a remotely operated vehicle has inspected the structure and risers as far as 2,700 feet deep without finding any damage. Devils Tower is a deepwater spar platform at Mississippi Canyon block 773 that is owned by Williams and operated by Dominion Exploration & Production, an operating unit of Dominion. The underwater inspection will continue as deep as 5,600 feet during the week.

The topsides at the Devils Tower platform were damaged during the storm. A completion rig owned by a third-party also was damaged. The platform will be out of service through this week, and possibly longer. A timetable for returning to service will be determined after further inspections.

Onshore Natural Gas Processing
In Alabama, the company's gas-processing plant in Mobile survived the storm without incident. Power was restored to the plant over the weekend, as well.

Managers at the plant, which can process approximately 600 million cubic feet per day, expect to begin processing gas again by the end of the week. Routine maintenance on a third-party pipeline that takes natural gas liquids from the plant is preventing an earlier return to processing.

Next Steps
Williams is continuing to proceed with underwater inspections at its Canyon Station and Devils Tower platforms. The company will provide an additional update on its Gulf operations upon the conclusion of these inspections.