For further information:
John P. Barnett
Director of Public Affairs 
Panhandle Energy
713-989-7556

Panhandle Eastern Pipe Line Company Receives Kansas Environmental Award

HOUSTON - August 25, 2003 - Panhandle Eastern Pipe Line Company received a Pollution Prevention Award from the Kansas Department of Health and Environment today for the reclamation of crankcase emission oil in Haven, Kan.

Panhandle Eastern, which was founded in Kansas in 1929, is an interstate natural gas pipeline company with operations in Kansas that include over 1,600 miles of pipeline, eight compressor stations and a natural gas storage field.

"The project has resulted in an average collection up to one gallon of oil per week at our Haven compressor station," said Jess Hudnall, project coordinator. "The success of the project at Haven resulted in the installation of this collection process at other company facilities."

Panhandle Eastern developed a company project in 1998 to identify any sources of pollution that had the potential to contaminate soil or groundwater. The emission of the crankcase oil vapors was identified as a potential issue because the vapors collected on the roof of the engine room and would be washed off by rain. Once the problem was identified, a team of employees designed a vent drainage system that would separate the oil from the vapor through condensation and collect it through a piping system where it would be managed as used oil.

"The project is unique because it identified a common issue that occurred daily. We then created a very cost effective method of providing a cleaner environment at our work locations in Kansas," said David Nordling, another project coordinator.

Panhandle Eastern Pipe Line Company, Trunkline Gas Company, Trunkline LNG Company and Sea Robin Pipeline Company, operating as Panhandle Energy, are units of Southern Union Company. Panhandle Energy operates more than 10,000 miles of mainline natural gas pipeline extending from the Gulf of Mexico to the Midwest and Canada. These pipelines access the major natural gas supply regions of the Louisiana and Texas Gulf Coasts as well as the Midcontinent. The pipelines have a combined peak day delivery capacity of 5.3 billion cubic feet per day and 90 billion cubic feet of underground storage. The company also owns and operates North America's largest liquefied natural gas (LNG) receiving terminal with sendout capacity of 630 million cubic feet per day and 6.3 billion cubic feet of above ground LNG storage facilities.

Southern Union Company (NYSE:SUG) is engaged primarily in the transportation and distribution of natural gas. Through its local distribution companies, Southern Union serves approximately 1 million natural gas end users in Missouri, Pennsylvania, Massachusetts and Rhode Island.

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For more information on Panhandle Energy, please visit our website at: www.panhandleenergy.com

This release and other company reports and statements issued or made from time to time contain certain "forward-looking statements" concerning projected future financial performance, expected plans or future operations. Southern Union Company cautions that actual results and developments may differ materially from such projections or expectations.

Important factors could cause actual results to differ materially from the forward-looking projections or expectations. These factors include, but are not limited to: customer growth; gas throughput volumes and available sources of natural gas; abnormal weather conditions in our service territories; new legislation and government regulations affecting or involving us; our ability to comply with or to challenge successfully existing or new environmental regulations; the outcome of pending and future litigation; the impact of relations with labor unions of bargaining- unit union employees; the impact of future rate cases or regulatory rulings; our ability to control costs successfully and achieve operating efficiencies, including the purchase and implementation of new technologies for achieving such efficiencies; the nature and impact of any extraordinary transactions, such as any acquisition or divestiture of a business unit or any assets; the economic climate and growth in our industry and service territories and competitive conditions of energy markets in general inflationary trends; changes in gas or other energy market commodity prices and interest rates; the current market conditions causing more customer contracts to be of shorter duration, which may increase revenue volatility; exposure to customer concentration with a significant portion of revenues realized from a relatively small number of customers and any credit risks associated with the financial position of those customers; our or any of our affiliates' debt securities ratings; factors affection operations such as maintenance or repairs, environmental incidents or gas pipeline system constraints; the possibility of war or terrorist attacks; and other risks and unforeseen events.