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Martin Resource Management Corporation Announces Open Season on Natural Gas Storage Facility

Posted on: Thursday, 14 December 2006, 15:00 CST

KILGORE, Texas, Dec. 14 /PRNewswire-FirstCall/ -- Martin Resource Management Corporation ("MRMC") announced today that Arcadia Gas Storage ("AGS"), an indirect affiliate of MRMC, will commence a non binding Open Season for salt cavern natural gas storage service in North Louisiana. AGS is offering a total of 15.5 Bcf of working gas storage capacity to be developed in three phases at its existing storage facility near Arcadia in Bienville Parish, Louisiana. In Phase I, AGS plans to convert four existing salt caverns to natural gas storage service. Three of the caverns are anticipated to be in service with a total of 0.8 Bcf of working gas capacity in August 2007. The fourth cavern will be enlarged to contain 0.7 Bcf of working gas capacity and is anticipated to be in service August 2008. Phase II and Phase III will each consist of constructing a new cavern with 7.0 Bcf of working gas capacity. It is anticipated that the 7.0 Bcf of new capacity in Phase II would be available for service in late 2009 and the second new 7.0 Bcf cavern associated with Phase III would be available for service in late 2011.

The potential interconnects for the AGS facility include both existing and proposed new pipelines. The existing pipelines include:

* PanEnergy Intrastate (Pelico) in Bienville Parish * Regency Intrastate Gas Pipeline in Bienville Parish * CenterPoint Energy Gas Transmission, Inc. in Bienville, Parish * Gulf South in Bienville Parish * CenterPoint Energy MRT in Claiborne Parish * Southern Natural Gas Company in Bienville Parish * Tennessee Gas Pipeline - 43A-100 * Texas Eastern - Castor Lateral * Texas Gas - Sharon

The new pipelines that have been proposed or that are currently under construction include:

* CenterPoint - East Texas to Perryville * Gulf South - East Texas to Mississippi * Gulf South - Gulf Crossing * Kinder Morgan/Energy Transfer - Mid Continent Express

It is currently anticipated that the storage facility will initiate service through interconnects with the Regency and PanEnergy (Pelico) Louisiana Intrastate pipelines but depending on customer demand could add additional interconnects in the future.

Ruben Martin, President and CEO of Martin Resource Management Corporation stated, "Our strategic location in North Louisiana puts us in the fairway of the new pipes providing takeaway capacity for the growing North Louisiana, North and East Texas production, including the Barnett Shale. Our potential customer base includes gas fired electric generation, local distribution companies, pipelines for operational and contract support, natural gas producers and natural gas marketing firms. With the available interconnects, our market starts in North Louisiana and could ultimately include the Southeast, Mid Atlantic, Northeast and Florida."

The open season begins at 9:00 a.m. on Dec. 15, 2006 and ends at 5:00 p.m. on Jan. 18, 2007. A completed Expression of Interest Form should be faxed by the close of the open season to the attention of Jeff Ballew at (903) 983 - 6327. After the close of the Open Season, AGS will evaluate the requests for service and begin discussions with the interested parties with the objective of negotiating commercially acceptable terms resulting in the execution of binding Precedent Agreements. More information including the Expression of Interest Form can be obtained at http://www.arcadiagasstorage.com/ or by calling Jeff Ballew at 903-983-6229 (jeff.ballew@martin-gas.com ) or David Hayden at 251-895-3884 (david.hayden@martin-gas.com ).

MRMC (http://www.martin-gas.com/ ) is a leading independent provider of transportation, terminalling, marketing and logistics management services for hydrocarbon products and by-products, chemicals and other bulk liquids, as well as providing fee-based services. In addition, MRMC owns 100% of the General Partner interest and a 36% limited partner interest in Martin Midstream Partners L.P. , a publicly traded master limited partnership. MRMC's primary business focus is to:

* provide truck and marine transportation, terminalling and logistics management for various liquid products; * market these products such as sulfuric acid, heavy and light fuel oils, asphalt, paper mill liquids and lube oils to wholesale, industrial and end users such as tugs, ships and vessels in the Southeast and Gulf of Mexico; and * provide services such as shore based logistics from bases located to serve the Gulf of Mexico E & P business.

MRMC operates throughout North America, with principal focus in the Southern United States.

Martin Resource Management Corporation

CONTACT: Jeff Ballew, +1-903-983-6229, or jeff.ballew@martin-gas.com ,or David Hayden, +1-251-895-3884, or david.hayden@martin-gas.com , both ofMartin Resource Management Corporation

Web site: http://www.martin-gas.com/http://www.arcadiagasstorage.com/

Source: PRNewswire-FirstCall

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