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3rd Quarter 2014

Pacific Connector Gas Pipeline

Issues Scheduling Notice

for EIS .............................................. 2

Oregon LNG Receives

Non-FTA Authorization..................... 2

Repairs Continue

at Plymouth Plant............................. 3

United Way 2014 Campaign

Launches with

“Changing the Odds” ....................... 4

Employee Profile: John Connelly ..... 4

Summer Recap and

Winter Forecast ................................ 5

Pacific Connector Gas Pipeline Issues Scheduling Notice for EIS On June 6, 2013, Pacific Connector Gas Pipeline filed a 7(c) application in

Docket No. CP13-492-000 requesting a Certificate of Public Convenience and Necessity to

construct, operate, and maintain certain natural gas pipeline facilities within Klamath, Jackson,

Douglas and Coos counties in Oregon.

Read the full story on page 2.

Oregon LNG Receives Non-FTA AuthorizationThe U.S. Department of Energy announced July 31 that it has conditionally authorized LNG

Development Company to export LNG to non-FTA countries from its Oregon LNG Terminal in

Warrenton, Oregon.

Read the full story on page 2.

Repairs Continue at Plymouth PlantWilliams is undergoing reconstruction of its Northwest Pipeline Plymouth Plant located in

Plymouth, Washington, after an incident that occurred at the Plymouth LNG facility in March.

Read the full story on page 3.

ContactMarketing Hotline801-584-7301

Scheduling Desk801-584-7229

Informational LinksMarketing Services Directory

Williams Connect Newsletter

FERC Watch – Under Regulatory

NAESB News – Under Regulatory

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Pacific Connector Gas Pipeline Issues Scheduling Notice for EIS

Oregon LNG Receives Non-FTA Authorization

On June 6, 2013, Pacific Connector Gas

Pipeline filed a 7(c) application in Docket

No. CP13-492-000 requesting a Certificate

of Public Convenience and Necessity to

construct, operate, and maintain certain natural

gas pipeline facilities within Klamath, Jackson,

Douglas and Coos counties in Oregon. The

proposed project consists of a 232-mile,

36-inch diameter pipeline with a 41,000-HP

compressor station.

The U.S. Department of Energy (DOE)

announced July 31 that it has conditionally

authorized LNG Development Company to

export LNG to non-FTA countries from its

Oregon LNG Terminal in Warrenton, Oregon.

The facility is conditionally authorized to export

at a rate of up to the equivalent of 1.25 billion

standard cubic feet per day (Bcf/d) of natural

gas for a period of 20 years.

The authorization is subject to environmental

review and final regulatory approval.

In its order for Oregon LNG, the DOE has

now cumulatively authorized non-FTA exports

totaling 10.52 Bcf/d, or 3.84 Tcf per year.

Oregon LNG’s FERC application for its export

terminal in Warrenton, Oregon – as well

as the 86-mile, 36-inch diameter pipeline

that would extend from

Woodland, Washington, to

the terminal – is currently

under review. The project

is expected to receive its

draft environmental impact

statement in 2015.

The project would primarily

export natural gas from

Canada, which the DOE

took under consideration

in its review. Williams plans to construct the

Washington Expansion Project, which will

require the installation of additional pipeline

and compression from the interconnect with

the West Coast system at Sumas to Oregon

Pipeline LLC’s proposed Oregon Pipeline project

near Woodland, Washington. The Washington

The project will provide up to 1,060,000

dekatherms per day (Dth/d) of firm

transportation from Malin, via interconnects

with Gas Transmission Northwest and Ruby

Pipeline, to the proposed Jordan Cove LNG

Export Facility near Coos Bay, Oregon. On

July 16, 2014, the FERC issued the Notice

of Schedule for Environmental Review of the

Jordan Cove Liquefaction Terminal and Pacific

Connector Pipeline Projects, which provided:

Expansion project would add an incremental

750,000 (Dth) of transportation capacity in the

I-5 corridor.

The authorization is subject to environmental

review and final regulatory approval.

• Issuance of Notice of Availability of the

final EIS (Feb. 27, 2015)

• 90-day Federal Authorization

Decision Deadline (May 28, 2015)

Issuance of the final EIS is one of the final

hurdles in the FERC regulatory review process.

Earlier this year, the U.S Department of Energy

conditionally approved the Jordan Cove Energy

Project application to export LNG through its

proposed terminal on Oregon’s coast to

non-FTA countries.

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Repairs Continue at Plymouth PlantWilliams is undergoing reconstruction of its

Northwest Pipeline Plymouth Plant located in

Plymouth, Washington, after an explosion and

fire that occurred at the Plymouth LNG facility in

March. The reconstruction of the jurisdictional

facilities are taking place under 18 CFR 2.55(b).

The damaged facilities are being constructed

in multiple phases in order to restore service as

soon as possible while minimizing impacts to

Northwest’s customers.

Damage occurred to both the Plymouth

Compressor Station and the Plymouth LNG

facility. Yard and station piping and a Saturn

turbine were damaged at the Plymouth

Compressor Station. By the end of August,

Williams had completed the repairs to the station

and yard piping, plus the Saturn turbine was

repaired and placed back in service.

The Plymouth LNG facilities comprises two LNG

plants (LNG 1 and LNG 2) that can separately

liquefy, store and vaporize gas. Both LNG 1

and LNG 2 experienced damage. The repairs

to the Plymouth LNG 1 and LNG 2 facilities are

underway and will be completed and returned to

service in phases.

Phase 1 restored utility systems and safety

systems, as well as repairing pipe and pipe racks

to provide Williams the ability to vaporize gas into

the mainline and recycle the boil-off-gas venting

from the LNG 2 tank into the mainline. Phase 1

construction was completed and the facilities

placed into service at the end of September.

Phase 2 will repair the liquefaction process on

the LNG 2 system and returns LNG 1’s tank

to service. Repairs are underway and Williams

estimates that customers will be able to liquefy

natural gas into the LNG 2 system in December

2014. The LNG 1 Tank is expected to be returned

to service in the second quarter of 2015.

Customers will then be able to liquefy natural gas

into both the LNG 1 and LNG 2 tanks utilizing the

LNG 2 liquefier.

The final phase will rebuild the remaining part of

the LNG 1 system, the system that experienced

the most damage. The LNG facilities are currently

expected to return to full service by

November 2015.

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The field offices also have their own fundraising

activities that help support United Way in their

communities. The Day of Caring is a key event

in the Williams campaign every year. For this

year’s event, employees from the Salt Lake City

office helped to improve a community garden

where immigrant and refugee families grow their

own food. More than 60 employees assembled

at the Hser Ner Moo Center, an apartment

complex in South Salt Lake that is part of

United Way’s Promise Partnership to help

businesses, local government and volunteers

revitalize the livability of the area.

The Hser Moo Center provides housing

for refugee families from around the world,

including Thailand, Burma, Afghanistan and

Nepal. Employees at the Northwest Pipeline

Employee Profile: John Connelly

John Connelly transferred from Tulsa to

Salt Lake City in early 2013. As part of the

move, he and his wife of 28 years now get to

experience life as empty nesters. Their four

kids ranging from ages 18 to 22 have new

experiences as college students or new work

careers, so for John and Sandy it made sense

to have their own adventure by experiencing

life in the West.

It has been a very exciting transition because

John gets more time to ski and hike, which are

his favorite hobbies. One of his other interests

from Tulsa transferred with him as he tries to

keep up with other employees on the Williams

coed indoor soccer team.

John leads the Engineering and Construction

departments, focusing on large projects

for Northwest as well as the gathering and

processing projects in Wyoming, Colorado

and New Mexico. John has always had a

strong interest in these projects because

they incorporate aspects from engineering,

operations, customer service and business.

He began his career with Exxon after

graduating with a Mechanical Engineering

degree from Oklahoma State University. His

past professional experience includes several

engineering consulting companies that serve

the production, midstream, refining and

pipeline aspects of the energy industry.

John joined Williams 20 years ago. He has

led departments focusing on Midstream and

Deepwater projects, as well as the commercial

and operations areas for the Conway

Fractionation and Storage assets in Kansas.

Northwest employees have a strong tradition

of charitable giving, civic leadership and

volunteering in the communities in which

they live and work. This year’s United Way

campaign kicked off with a goal to “Change

the Odds” for disadvantaged families, school

children and adults in our local communities.

Williams supports United Way at Northwest

Pipeline and throughout the company with

fundraising, volunteer service and education.

Some of our fundraising activities in

Salt Lake City included a golf tournament, a

70+ mile bike ride through nearby Wasatch

Mountain canyons, a school supply “Stuff the

Bus” collection campaign to gather school

supplies for 8,500 needy students, and

several food sales at lunch time cook-offs.

United Way 2014 Campaign Launches with “Changing the Odds”

raised $550,338 last year through personal

donations and a matching contribution from

Williams, and we plan to continue our tradition

of giving this year.

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It is clear to see that the price spreads of 2013

had an impact on the flows (reflected in Dths)

to and from several receipt and delivery points

on the Northwest Pipeline system. The summer

of 2014 had relatively flat prices, which helped

avoid pipeline constraints and allowed Williams

to execute its maintenance and integrity work

schedule without major interruptions to

its customers.

What is the outlook for the 2014–15 winter?

The winter outlook is shaping up to be

similar to the past few winters. From a supply

standpoint, domestic supplies are projected to

be lower than Canadian supplies for most of

the winter season.

Williams is ideally positioned with ample

access to storage and multiple supply

basins from the Four Corners region

to Canada. The chart below shows

the supply diversity utilized on the

Northwest Pipeline.

To avoid the issuance of operational

flow orders northbound through

Kemmerer, Plymouth and Roosevelt

constraint points, Williams encourages

its customers to procure a balanced

supply of domestic and Canadian gas.

Summer Recap and Winter ForecastHow did this summer (June, July and August) compare to last summer?

Continued on page 6.

2013 2014

Avg. Sumas Price per Dth $3.33 $4.01

Avg. Daily Sumas Flow (excl. June) 1,039,022 902,156

Avg. Stanfield Price per Dth $3.42 $4.07

Avg. Daily Stanfield Flow 122,033 48,304

Avg. Opal Price per Dth $3.45 $4.10

Avg. Daily Opal Flow 16,463 23,968

Avg. Daily Delivery to Kern River 191,987 139,950

Avg. Daily through LaPlata B 178,217 168,942

Avg. Daily Delivery to Direct- Connect Power Generation

291,842 240,386

Avg. Daily Scheduled Delivery Qty. 1,713,102 1,641,096

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Customers can help avoid entitlement periods

by making sure they align their supplies with

their market demand. This is especially true

during cold winter days.

On the storage front, Williams will continue to

use its Northwest Pipeline storage flexibility

to mitigate Operational Flow Orders and

entitlements as much as possible. At the

beginning of the winter heating season,

Williams will use its 2.1 Bcf of balancing

flexibility to mitigate OFOs until its storage

balance north of Kemmerer decreases below

1.5 Bcf. Williams will attempt to lower this

threshold as the winter heating season winds

down. The chart below shows the deliverability

curve at Jackson Prairie and how it was

impacted by late season cold weather spells.

Williams customers can monitor daily operational

information, such as throughput quantities and

storage balances, through the NWP website at

www.northwest.williams.com. The website also

has copies of Northwest Pipeline’s OFO and

entitlement policies.

We always appreciate our customers for their

willingness to cooperate. By working together,

we believe that we can minimize the quantity

and duration of any OFO or entitlement needed

to ensure system reliability for all customers.