Williams executes agreements with Redbud Energy

OWENSBORO, Ky., Oct. 15, 2001 — A unit of Williams and Redbud Energy, LP announced today the execution of agreements in which Williams will provide up to 51,980 dekatherms per day of firm natural gas transportation service to the natural gas-fueled Redbud Energy Facility near Luther, Okla.

In order to meet the agreement, Williams’ Central pipeline system will seek permission from the Federal Energy Regulatory Commission to construct a 30-inch diameter pipeline and measurement and flow control facilities to the plant. Williams proposes to have the new facilities in service by Dec. 15, 2002. Full operation of the Redbud combined-cycle generation facility is scheduled for June 1, 2003. Financial terms of the agreement were not disclosed.

“We are very pleased to have reached this agreement with Redbud to help them utilize clean-burning, economical natural gas for their proposed state-of-the-art power generation facility near Luther. This agreement is another example of Williams’ strong commitment to the fast-growing power generation market,” said Dean Jones, vice president of customer services and rates for Williams’ Central and Texas Gas systems.

With a system that spans the continental United States, Williams’ gas pipeline unit is among the nation’s largest volume transporters of natural gas. The gas pipeline operation is based in Houston and has offices in Salt Lake City and Owensboro.

About Williams

Williams, through its subsidiaries, connects businesses to energy, delivering innovative, reliable products and services. Williams information is available at www.williams.com.