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MITCHELL ENERGY & DEVELOPMENT CORP. AND NATURAL GAS CLEARINGHOUSE ANNOUNCE LONG-TERM STORAGE AGREEMENT

 THE WOODLANDS, Texas, Sept. 22 /PRNewswire/ -- Mitchell Energy & Development Corp. (NYSE: MND A & B), and its subsidiary, Winnie Pipeline Company, announced today that Natural Gas Clearinghouse (NGC) has leased one billion cubic feet (Bcf) of storage space at Mitchell's new Spindletop Natural Gas Storage Facility near Beaumont.
 Under the terms of the 10-year lease agreement, which went into effect July 1, Mitchell will provide Natural Gas Clearinghouse guaranteed capacity in Winnie Pipeline's recently opened salt dome gas storage facility, as well as access to and from numerous interstate and intrastate pipelines in Southeast Texas.
 The $50-million-plus Spindletop facility, which opened last winter, currently has one partially completed cavern in operation with a working capacity of 1.7 Bcf. The company stopped work on the first cavern in order to begin storage operations immediately but will expand it to its full 6 Bcf working gas capacity as soon as a second cavern, now under construction, is completed. By 1997, when both caverns are in operation, the facility will have a total working gas capacity of 12 Bcf. Ultimately, Mitchell could expand the facility to six caverns capable of storing up to 36 Bcf of natural gas.
 "This agreement is a perfect marriage," said Allen J. Tarbutton, Jr., president of Mitchell Energy's Transmission and Processing Division. "Natural Gas Clearinghouse is one of the most successful companies in the gas marketing business. Having a customer of their caliber and reputation on board with Spindletop at this early stage validates our belief that storage is key to making natural gas the nation's number-one fuel source," he said.
 Tarbutton said Mitchell originally designed the Spindletop facility to serve its Winnie Pipeline customers in the Golden Triangle area. However, as the project developed, the company saw an opportunity to expand the facility and offer storage to other interstate and intrastate pipelines, marketers, industries and utility gas users. He added that Winnie soon will complete a pipeline connection to the Texaco Sabine Pipeline, giving Spindletop customers direct access to the New York Mercantile Exchange gas futures trading center, known as Henry Hub, located in Vermilion Parish, Louisiana.
 According to C. L. Watson, chairman, CEO and president of NGC, "The availability of storage in the Spindletop caverns provides NGC with greater flexibility for making sales and purchases under the most advantageous market conditions. Winnie's interconnect with Sabine also provides us with access to the Henry Hub.
 "We were particularly attracted to Spindletop because the space is available now and will, therefore, make an immediate contribution in terms of NGC's preparations for Order 636 implementation this winter," he said.
 Mitchell Energy & Development Corp. is among the nation's largest independent producers of natural gas, natural gas liquids and oil. The company also has sizable real estate interests in the Houston-Galveston area.
 NGC is the nation's largest independent gas marketer with sales averaging approximately 3 Bcf per day. NGC also owns and operates seven gas processing plants, over 1,400 miles of gas gathering systems and markets nearly 30,000 barrels per day of natural gas liquids, as well as 50,000 barrels per day of crude oil. The company also is actively engaged in other joint venture storage projects which will serve Midwest, Mid-Atlantic and Northeast markets.
 -0- 9/22/93
 /CONTACT: Debbie Siegfried, 713-377-5658, or Tony Lentini, 713-377-5654, or Ken Randolph (NGC), 713-744-1710, or Glenn Etienne (NGC), 713-744-1760, all of Mitchell Energy & Development Corp./
 (MNDA)


CO: Mitchell Energy & Development Corp.; Natural Gas Clearinghouse ST: Texas IN: OIL SU:

WB -- NY030 -- 4641 09/22/93 11:10 EDT
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Publication:PR Newswire
Date:Sep 22, 1993
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