nited States. Under a firm transportation service agreement, the entire capacity of Elba Express is contracted to Shell NA LNG LLC (Shell LNG). The firm transportation service agreement is supported by a parent guarantee from Shell Oil Company. SLNG SLNG owns the Elba Island LNG receiving terminal, located near Savannah, Georgia. The Elba Island LNG terminal is one of nine land based terminal facilities in the United States capable of providing domestic storage and vaporization services to international producers of LNG. The Elba Island LNG terminal has approximately 11.5 billion cubic feet equivalent of LNG storage capacity and approximately 1.8 billion cubic feet per day of peak send-out capacity. The capacity of the Elba Island LNG terminal is contracted with BG LNG Services, LLC under a recourse rate contract consisted primarily of a fixed reservation rate with a small variable component and Shell LNG under a long-term step-down fixed reservation rate contract. The Elba Island LNG terminal is directly connected to three interstate pipelines, indirectly connected to two others, and also connected by commercial arrangements to a major local distribution company, and is accessible to the southeast and mid-Atlantic markets. Customers The company’s customers consist of natural gas distribution and industrial companies, electric generation companies, natural gas producers, other natural gas pipelines, and natural gas marketing and trading companies. It provides transportation and storage services in both its natural gas supply and market areas. The company’s SNG system is directly connected to the Haynesville Shale formation in northern Louisiana and indirectly connected, through new interconnecting pipelines, to the Barnett Shale, Bossier Sands, Woodford Shale, and Fayetteville Shale. Its gas pipelines serving the Rocky Mountain area are directly connected to the Niobrara Shale formation along the Front Range of the Rockies in Colorado and Wyoming. SNG: SNG’s major customer includes Atlanta Gas Light Company, a subsidiary of AGL Resources. CIG: The company’s CIG system serves two major markets, an on-system market and an off-system market. The on-system market consists of utilities and other customers located along the front range of the Rocky Mountains in Colorado and Wyoming. The off-system market consists of the transportation of Rocky Mountain natural gas production from multiple supply basins to interconnections with other pipelines in the Midwest, Southwest, California, and the Pacific Northwest. Business Strategy The company’s business strategy is to focus on stable, fee-based energy transportation and storage assets that are central to the energy infrastructure of improving markets within North America; increase utilization of its existing assets while controlling costs, operating safely and employing environmentally sound operating practices; and utilize economies of scale from incremental acquisitions and expansions of assets that fit within its strategy and are accretive to cash flow. Regulatory Environment The company’s interstate natural gas transmission systems and storage operations are regulated by the FERC under the Natural Gas Act of 1938, the Natural Gas Policy Act of 1978, and the Energy Policy Act of 2005. The company is subject to safety regulations imposed by the United States Department of Transportation Pipeline and Hazardous Materials Safety Administration, including those requiring the company to develop and maintain integrity management programs to evaluate certain areas along its pipelines and take additional measures to protect pipeline segments located in what are referred to as high consequence areas, where a leak or rupture could do the harm. The company is also subject to the requirements of the Federal Occupational Safety and Health Act, and other comparable federal and state agencies that address employee health and safety. The company’s interstate pipeline systems are also subject to other federal, state, and local safety and environmental statutes and regulations of the United States Department of Transportation and the United States Department of th