The Inside FERC posted the March 2008 CIG Index at $7.81.

NYMEX FUTURES PRICING (3/6/08)

Apr 08 $9.742
Apr 07 closed @ $7.472
NYMEX 1 year strip (Apr 08-Mar 09) $10.17
Actual NYMEX strip (Apr 07-Mar 08) $7.18
Summer NYMEX (Apr 08- Sept 08) $9.87
Actual NYMEX strip (Apr 07-Sept 07 $6.85

The prices stated above are in MMBtu and are the simple weighted averages of the term stated, your price could very on usage and the months of those usages.

STORAGE REPORT
This week’s EIA storage report for the week ending February 29, 2008:
This week’s withdrawal of: 135 Bcf
Leaving this week’s balance at: 1484 Bcf
This week’s balance last year: 1653Bcf
This week’s balance, 5-yr average: 1421 Bcf

According to EIA’s data, storage inventories are approx 4% above the 5-year average inventory level for this report week.

THOUGHTS ON THE MARKET

March’s expiration price was the highest since Jan 2006 following the aftermath of Katrina-Rita and a full $2.00 more than the average expiration prices of the 25 months since that historic event, but this time there’s no fundamental event to explain it. April future prices continue to close higher. The market is overbought., which signal that higher prices are possible near-term.

April crude oil prices closed higher and continue to post a new all-time high. April crude settled at a record $105.47. OPEC decided not to cut production earlier this week.

NYMEX FUTURES PRICING (2/12/08)

Mar 08 $8.531 Mar 07 closed @ $7.226
NYMEX 1 year strip (Mar 08-Feb 09) $8.99
Actual NYMEX strip (Mar 07-Feb 08) $7.06
Summer NYMEX (Apr 08- Sept 08) $8.71
Actual NYMEX strip (Apr 07-Sept 07 $6.85

The prices stated above are in MMBtu and are the simple weighted averages of the term stated, your price could very on usage and the months of those usages.

STORAGE REPORT
This week’s EIA storage report for the week ending February 1, 2008:
This week’s withdrawal of: 200 Bcf
Leaving this week’s balance at: 2062 Bcf
This week’s balance last year: 2379Bcf
This week’s balance, 5-yr average: 2000 Bcf

According to EIA’s data, storage inventories are approx 3% above the 5-year average inventory level for this report week. The withdrawal of 200 Bcf was the second largest this heating season but was less than last year for the same report week.

THOUGHTS ON THE MARKET

37 days until spring! WOOHOO!

March natural gas futures as well as the rest of the energy complex finished higher on Monday. Natural gas was largely supported by cold weather that might boost heating demand. Meteorologists report that moderate to strong La Nina conditions should persist well into this summer.

If the primary driver supporting high gas prices is cold winter, the coming of spring will resolve that situation. As hard as it is in the face of making a budget work for your company, remain patient and wait on lower prices even if it means waiting until April or May this year ….. although I doubt it will take that long.

Rockies Express Pipeline (REX) began interim service on Sat, Jan 12, 08, on about 500 miles from the Cheyenne Hub to an ANR delivery point in Brown Co, KS. The remaining 213 mile section of REX-West will continue eastward to Audrain Co, MO and is expected to be in service in a few weeks.

NYMEX FUTURES PRICING (1/8/08)

Feb 08 $7.879
Feb 07 closed @ $6.917
NYMEX 1 year strip (Feb 08-Jan 09) $8.20
Actual NYMEX strip (Feb 07-Jan 08) $6.97
Winter NYMEX (Feb-Mar 08) $7.88
Actual NYMEX strip (Feb-Mar 07 $7.23

The prices stated above are in MMBtu and are the simple weighted averages of the term stated, your price could very on usage and the months of those usages.

STORAGE REPORT
This week’s EIA storage report for the week ending December 28, 2007:
This week’s withdrawal of: 87 Bcf
Leaving this week’s balance at: 2921 Bcf
This week’s balance last year: 3008Bcf
This week’s balance, 5-yr average: 2699 Bcf

According to EIA’s data, storage inventories are approx 8.2% above the 5-year average inventory level for this report week. Working gas in storage is well above the 5-year average for this time year, indicating a ready supply source to meet peak demand as the winter heating season progresses.

THOUGHTS ON THE MARKET

The year-on-year storage deficit ballooned for the second consecutive week due to the exceptionally warm weather pattern that was in place across the US at the end of December. And the mild conditions are expected to continue well into January, which should keep storage withdrawals relatively low.

Natural gas futures were relatively flat throughout 2007, with the opening 12-month NYMEX strip at $7.07. Short-term supply and demand have been favorable with very moderate weather, little storm activity and record storage levels. There are expectations of a warm winter and possibly lower prices, but it is hard to imagine that prices do not already reflect the current bearish outlook, and almost any unexpected news could send prices higher. Weather and the economy will drive shorter term prices. Crude oil traded to $100/bbl for the first time last week – actually several times.

NYMEX FUTURES PRICING (12/10/07)

Jan 08 $7.032
Jan 07 closed @ $5.838
NYMEX 1 year strip (Jan-Dec 08) $7.46
Actual NYMEX strip (Jan-Dec 07) $6.86
Winter NYMEX (Jan-Mar 08) $7.11
Actual NYMEX strip (Jan-Mar 07 $6.61

The prices stated above are in MMBtu and are the simple weighted averages of the term stated, your price could very on usage and the months of those usages.

STORAGE REPORT
This week’s EIA storage report for the week ending November 30, 2007:
This week’s withdrawal of: 88 Bcf
Leaving this week’s balance at: 3440 Bcf
This week’s balance last year: 3408Bcf
This week’s balance, 5-yr average: 3167 Bcf

According to EIA’s data, storage inventories are approx 8.6% above the 5-year average inventory level for this report week. This week’s above-average withdrawal likely resulted from the return of cold temperatures across much of the U.S. Temperatures were 9% colder than normal and about 50% colder than last year as measured by National Weather Service heating degree days.