AGL Resources CEO Reiterates Commitment to Jefferson Island Gas Storage Expansion.

ATLANTA -- AGL Resources Inc. (NYSE: ATG) President and CEO John Somerhalder today reiterated the company's commitment to the expansion of natural gas storage at its Jefferson Island Storage & Hub facility near Erath, La.

In response to a letter the company received late Monday from the staff of the Office of Mineral Resources of the Louisiana Department of Natural Resources (DNR), Somerhalder said: "We will be working to resolve the issues raised by DNR as quickly as possible to reduce whatever impact, including timing, this may have on our expansion plans at Jefferson Island."

In the letter, the agency informed the company that the Office of Mineral Resources' position is that the company's mineral lease - necessary for salt extraction to create two new storage caverns - at Lake Peigneur, site of the Jefferson Island Storage & Hub facility, has been terminated. DNR identified two areas of concern: (1) timeliness of the mining leasehold payment, and, (2) lack of mining operations for six months.

"We are fully committed to working with the state to resolve these important issues," said Somerhalder. "This project is significant in terms of the economic development impact in Louisiana, and given the fuel supply and price issues affecting the entire nation, the continued expansion of natural gas storage capacity is critical."

About AGL Resources

AGL Resources (NYSE: ATG), an Atlanta-based energy services holding company, serves 2.2 million customers in six states through its utility subsidiaries - Atlanta Gas Light, Elizabethtown Gas in New Jersey, Virginia Natural Gas, Florida City Gas, Chattanooga Gas, and Elkton Gas in Maryland. Ranked by Forbes as one of the 10 Best Managed Utilities and No. 250 in the Forbes Platinum 400 as well as No. 647 on the Fortune 1000 and No. 40 in the Fortune gas and electric utilities sector in 2006, AGL Resources reported revenue of $2.7 billion and net income of $193 million in 2005. The company also owns Houston-based Sequent Energy Management, an asset manager serving natural gas wholesale customers throughout the East and Midwest. As a 70 percent owner in the SouthStar partnership, AGL Resources markets natural gas to consumers in Georgia under the Georgia Natural Gas brand. AGL Networks, the company's telecommunications subsidiary, owns and operates fiber optic networks in Atlanta and Phoenix. The company also owns and operates Pivotal Jefferson Island Storage & Hub, a high-deliverability natural gas storage facility near the Henry Hub in Louisiana. For more information, visit www.aglresources.com.

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