November 9, 2004

The Michigan Public Service Commission (MPSC) today granted Hudson Pipeline
& Processing Co., LLC and Samson Resources Company authority to construct and operate natural gas pipelines in Michigan.

Hudson Pipeline & Processing Co. was granted authority to construct and operate the Aspen Pipeline. The proposed 4-inch, 2.8-mile steel pipeline will commence at O.I.L. Energy Corp.'s Central Production Facility located in Hudson Township in Charlevoix County and extend to an interconnection with the Terra North Elmira Pipeline System located in Elmira Township in Otsego County. The pipeline will used to transport natural gas from O.I.L. Energy Corp. and Aurora Energy to market by way of the existing gas transmission system. Its approximate cost is $844,300.

The Commission concluded that the pipeline will serve the public convenience and necessity. The Commission also found the separate long-term transportation agreements between Hudson Pipeline & Processing Co. and O.I.L. Energy Corp. and Aurora Energy to be reasonable.

Hudson Pipeline & Processing Co., headquartered in Grand Rapids, Mich., requested approval to construct and operate the Aspen Pipeline on Sept. 22.

Samson Resources Company was granted authority to construct and operate the Alpena LP Extension Pipeline. The pipeline will consist of two pipelines (one containing treated natural gas and one containing untreated natural gas) to enable Samson to deliver pipeline quality natural gas from the Gehrke, Seguin and Nicholson Hill central production facilities (CPFs) to Samson's Treasure Island CPF and the existing Alpena LP transmission pipeline.

The treated pipeline will consist of 5.2 miles of 12-inch polyethylene pipe commencing at the proposed Gehrke CPF located in Ossineke Township and extending to an interconnection with Samson's existing Alpena LP transmission pipeline located in Sanborn Township, all located in Alpena County.

The untreated pipeline will consist of a mainline and two gathering lines. The mainline will consist of 1.9 miles of 10-inch and 3.7 miles of 8-inch polyethylene pipe commencing at the Gehrke CPF and then extending to the Treasure Island CPF located in Sanborn Township in Alpena County. The Sequin gathering pipeline will consist of 0.1 miles of 8-inch polyethylene pipeline commencing at the Sequin CPF located in Ossineke Township and then interconnecting with the untreated mainline located in Ossineke Township, all located in Alpena County. The Nicholson Hill gathering pipeline will consist of 0.5 miles of 8-inch pipeline commencing at the Nicholson Hill CPF located in Sanborn Township in Alpena County and then interconnecting with the untreated mainline located in the same township.

The Alpena LP Extension Pipeline will be used to efficiently transport natural gas from Samson's three CPFs to market by way of the existing gas transmission system. Its approximate cost is $998,000.

Samson Resource Company, headquartered in Tulsa, Okla., requested approval to construct and operate the Alpena LP Extension Pipeline on Oct. 5.

The Aspen and Alpena LP Extension pipelines will meet the requirements of the Michigan Gas Safety Standards if constructed, tested and operated as proposed.

The MPSC is an agency within the Department of Labor & Economic Growth.

Cases Nos. U-14298, U-14307

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