Chief Gathering to Relocate Site for Dallas Township Compressor Station

Chief to file amended permit for metering station

Wexford, Pennsylvania (February 23, 2011) – Chief Gathering LLC, a subsidiary of Chief Oil & Gas LLC, announced today that it is exploring alternative sites for a proposed natural gas compressor station in Dallas Township in Luzerne County.

On Friday, Chief hosted a field tour of its Susquehanna East Compressor Station in Hop Bottom for Senator Lisa J. Baker (R-20), State Representative Karen Boback (R-117), and members of their staff and the local media.

Ted Wurfel, vice president of environmental, safety and regulatory affairs stated, “After discussing community concerns around the proposed Luzerne Compressor Station with Senator Baker and Representative Boback during the field tour, we decided to look into other options for the location of the compressor site, into a more rural area of Dallas Township. We want the community to know we listened to all their concerns and we will find a new site, which will be farther away from the school, which we are hopeful will be more acceptable.”

Chief is currently in the process of reviewing the new potential sites and will develop a site plan before a new permit application is submitted for a compressor station.

A compressor station is a necessary and important part of the process in natural gas development. A compressor station facilitates the transport of natural gas to homes and businesses by compressing and pressurizing the gas so it can safely travel through a pipeline to markets.

Chief also announced that it will apply for an amended permit for construction of a metering station on the Hildebrandt Road property in Dallas. While it is possible the compressor station can be moved farther away, the metering station must be next to the Transco line. The metering station will require less than an acre of land to build. A meter has to be physically located at the point of custody transfer from Chief Gathering to the Transco pipeline to measure the gas before it goes into the main line and on to businesses and homes.

About Chief Gathering LLC

Chief Gathering LLC is a subsidiary of Chief Oil & Gas LLC. Chief Gathering constructs and operates pipelines to deliver natural gas from wellheads to interstate and intrastate pipelines that ultimately redeliver to businesses and homes. Chief Gathering currently operates 65 miles of natural gas pipeline and four compressor stations within Lycoming, Bradford, Susquehanna, Wyoming and Greene Counties, Pennsylvania.

About Chief Oil & Gas LLC

Based in Dallas, Texas, Chief Oil & Gas is privately held, independent oil & gas company engaged in the exploration, development and production of oil and natural gas reserves from fields throughout the continental United States. In the Marcellus, Chief holds more than 487,000 acres of leasehold in Pennsylvania, West Virginia and Maryland, has drilled 126 wells and has 9 drilling rigs working.