NYMEX Reiterates Rule In Light Of Force Majeure Declaration By Sabine Pipeline

The New York Mercantile Exchange determined to make a finding of force majeure with respect to all remaining delivery obligations in the September natural gas futures contract effective as of yesterday’s declaration by Sabine. Accordingly, any further action by the Exchange will be undertaken pursuant to its authority as set forth in NYMEX rule 220.18, in particular rule 220.18 section (C)(6).

The Exchange had been advised that Sabine Pipeline, which operates the Henry Hub facility in Louisiana, had implemented a pipeline shutdown yesterday and also had issued a force majeure declaration that became effective yesterday at 1:00 PM Central time.

All parties have available now, as always, the ability to mutually agree to execute an alternative delivery procedure pursuant to NYMEX rule 220.17(A) for the September 2005 delivery obligations.

Furthermore, if necessary the Exchange will consider any appropriate decisions and actions pursuant to the rules regarding any upcoming obligations in the October 2005 natural gas futures contract as conditions at the Henry Hub are evaluated.

The Exchange continues to monitor the situation and will update accordingly.