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Williston Basin Interstate Pipeline Announces Plans to Develop Natural Gas Pipeline Out of Bakken Production Region

Posted on: Monday, 19 May 2008, 18:00 CDT

WBI Holdings, Inc. announced today that its subsidiary, Williston Basin Interstate Pipeline Company, plans to develop the Bakken Pipeline, a new natural gas pipeline designed to transport natural gas from the fast-growing Bakken Play in northwestern North Dakota and northeastern Montana to a new pipeline interconnect with Alliance Pipeline.

The proposed pipeline will consist of approximately 100 miles of 16-inch diameter pipeline, compression and associated facilities. It will originate at an interconnect with Williston Basin's existing pipeline system in Mountrail County, N.D., and will run northeasterly to a new pipeline interconnect with Alliance Pipeline in Bottineau County, N.D.

The Bakken Pipeline is anticipated to have an initial capacity of approximately 100 million cubic feet per day, with the flexibility to expand capacity to 200 MMcf per day. It is projected to be in service in mid-2010, subject to shipper commitment and regulatory approvals.

"The Bakken Pipeline will provide producers who are active in the Bakken Play the option to deliver natural gas to the growing markets served by Alliance Pipeline in the Midwestern and Eastern United States," said Steven L. Bietz, president and chief executive officer of WBI Holdings. "This pipeline will be designed to transport rich, high-Btu natural gas and will provide producers the option to deliver certain natural gas liquids out of the Bakken Play. It may reduce gas processing requirements and provide market opportunities for natural gas liquids that do not exist currently for the Bakken Play."

The Bakken Pipeline offers a number of potential benefits to producers and Williston Basin shippers:

-- Enhanced market diversity and access to growing Midwestern and Eastern markets, including the Chicago gas trading hub.

-- Superior pricing and netbacks.

-- Ability to transport rich natural gas, which may reduce processing requirements and provide improved market access for certain natural gas liquids.

-- Competitive rates because of efficiencies from existing infrastructure, operations and personnel in the area.

The Bakken Pipeline open season will begin June 16 and will run through July 11. Open season documents will be available on Williston Basin's Web site at www.wbip.com.

The information in this release includes forward-looking statements, including statements by the president and chief executive officer of WBI Holdings, Inc. regarding plans to develop and potential benefits of developing a natural gas pipeline out of the Bakken production region, within the meaning of Section 21E of the Securities Exchange Act of 1934. Although the company believes that its expectations are based on reasonable assumptions, actual results may differ materially. Important factors that could cause actual results to differ materially from those in the forward-looking statements include fluctuations in natural gas prices; the timely receipt of necessary permits and approvals; market demand for, and/or available supplies of, energy-related products and services; and unanticipated project delays. For a discussion of other important factors that could cause actual results to differ, refer to Item 1A - Risk Factors in MDU Resources' most recent Form 10-K and Form 10-Q.

WBI Holdings, Inc. provides natural gas transportation, underground storage and gathering services through regulated and nonregulated pipeline systems and provides energy marketing and management services throughout the United States. WBI Holdings is an indirect subsidiary of MDU Resources Group, Inc., a multidimensional natural resource enterprise traded on the New York Stock Exchange as "MDU." For more information about WBI Holdings, visit the company's Web site at www.wbip.com.

Media Advisory - Map artwork available:

A print-ready map showing the proposed location of the Bakken Pipeline is available for downloading at: www.mdu.com/information_news/bakkenproject.jpg

Source: Business Wire

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