Inergy Receives Regulatory Approval for Stagecoach Phase II Expansion.

KANSAS CITY, Mo. -- Inergy, L.P. (NASDAQ: NRGY) announced today that its regulated subsidiary Central New York Oil And Gas Company, LLC ("CNYOG") has been granted its Section 7(c) Application for Certificate of Public Convenience and Necessity by the Federal Energy Regulatory Commission ("FERC") for the expansion of the Stagecoach natural gas storage facility. The certificate authorizes Inergy to construct and operate the Phase II expansion under market-based rate authority, authorizes market-based rates for its new Interruptible Wheeling Service, and allows for the connection of Stagecoach to the Millennium pipeline project when in service.

The Phase II expansion is expected to add approximately 13 Bcf of working gas storage capacity to the existing facility and is targeted for completion in September of 2007. Inergy has previously announced that it has sold 100% of the available deliverability of the Phase II expansion with a weighted average term of all precedent agreements being in excess of eight years. Phase II drilling has begun, and construction of gathering lines is expected to begin within the next two weeks.

"We are pleased to have achieved this milestone and look forward to the successful construction and operation of the Stagecoach expansion," said John Sherman, President and CEO of Inergy.

About Central New York Oil And Gas Company, LLC

Central New York Oil And Gas Company, LLC is a New York limited liability company formed to construct, expand, and operate the Stagecoach storage facility located 150 miles northwest of New York City in Tioga County, New York. Central New York Oil And Gas Company, LLC is an indirect wholly owned subsidiary of Inergy, L.P. For more information about Central New York Oil And Gas Company, LLC and the Phase II project go to www.stagecoachstorage.com.

About Inergy, L.P. and Inergy Holdings, L.P.

Inergy, L.P. is headquartered in Kansas City, Missouri, and serves approximately 700,000 retail propane customers from over 300 customer service centers throughout the eastern half of the U.S. The company also owns and operates Central New York Oil And Gas Company, LLC, a natural gas storage business, and provides logistics, transportation, and wholesale marketing for propane that serves independent dealers and multi-state marketers in the U.S. and Canada. Inergy Holdings, L.P.'s assets consist of its ownership interest in Inergy, L.P., including limited partnership interests, ownership of the general partners, and the incentive distribution rights.

This news release contains forward-looking statements, which are statements that are not historical in nature such as the expectation that the expansion facilities will add 13 Bcf of working gas capacity and will be in service in September of 2007. Forward-looking statements are subject to certain risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or any underlying assumption proves incorrect, actual results may vary materially from those anticipated, estimated, or projected. Among the key factors that could cause actual results to differ materially from those referred to in the forward-looking statements are: delays in approvals from the Federal Energy Regulatory Commission or other federal or state regulatory agencies, construction delays, weather conditions that vary significantly from historically normal conditions, the demand for high deliverability natural gas storage capacity in the Northeast, the general level of petroleum product demand and the availability of natural gas and the price of natural gas to the consumer compared to the price of alternative and competing fuels, our ability to successfully implement our business plan for the Stagecoach facility, our ability to generate available cash for distribution to unitholders, the outcome of certificate and rate decisions issued by the Federal Energy Regulatory Commission, and the costs and effects of legal, regulatory, and administrative proceedings against us or which may be brought against us. These and other risks and assumptions are described in Inergy's annual report on Form 10-K and other reports that are available from the United States Securities and Exchange Commission.

Corporate news, unit prices, and additional information about Inergy, including reports from the United States Securities and Exchange Commission, are available on the company's website, www.inergypropane.com. For more information, contact Mike Campbell in Inergy's Investor Relations Department at 816-842-8181 or via e-mail at [e-mail].