HOUSTON, Oct. 17 /PRNewswire-FirstCall/ -- El Paso Natural Gas Company
(EPNG), a wholly owned subsidiary of El Paso Corporation (NYSE: EP), announced
today that it expects its right-of-way agreement across lands held by the
United States in trust for the Navajo Nation to expire at midnight tonight.
The company does not expect any interruption in service to its customers.
    "We are deeply disappointed that after more than a year of good-faith
effort we have not been able to reach agreement with the Nation's negotiating
team," said James J. Cleary, president of El Paso Natural Gas.  "We greatly
value our history of cooperation with and respect for the Navajo people that
spans more than 50 years.  However, we owe it to consumers in the states we
serve to oppose the Navajo negotiators' current demand of more than $50,000
per acre for a 20-year renewal of our agreement.  As a result, we have asked
the U.S. Department of the Interior to renew our right of way without tribal
consent at a rate that is fair for the Nation and fair for consumers."
    EPNG has paid the Nation $29 million during the past 20 years for the
expiring right of way.  The current demand from the Navajo negotiators of more
than $50,000 per acre totals roughly $440 million during a 20-year period.  In
contrast, the fair market value for perpetual rights of way on privately owned
land in this area is $100 to $500 per acre.  El Paso has offered the Nation
$138 million in cash and restricted common stock, as well as non-cash
consideration of approximately $60 million.  This offer is generous by any
measure.  The non-cash consideration derives from two alternative projects
that EPNG has proposed (one of which the Nation may select): fully
capitalizing a helium project on the Nation to develop prolific Navajo helium
reserves or converting some of EPNG's natural gas-fueled compression to
electric compression and purchasing the necessary electricity from the
Nation's utility.
    El Paso's application with the Department of the Interior is available on
El Paso's Web site at http://www.elpaso.com and can be found under Resources
in the "El Paso and the Navajo Nation" section.  This site also includes
Section 1813 of the Energy Policy Act of 2005, in which Congress commissioned
a comprehensive study of energy infrastructure rights of way on tribal lands
to be conducted jointly by the Departments of Energy and the Interior.  The
study signals Congress' growing concern over recent tribal right-of-way trends
and indicates that EPNG is not the only energy transporter confronting this
phenomenon.
    El Paso Corporation provides natural gas and related energy products in a
safe, efficient, and dependable manner.  The company owns North America's
largest natural gas pipeline system and one of North America's largest
independent natural gas producers.  For more information, visit
http://www.elpaso.com .

    Cautionary Statement Regarding Forward-Looking Statements
    This release includes forward-looking statements and projections, made in
reliance on the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995.  The company has made every reasonable effort to ensure
that the information and assumptions on which these statements and projections
are based are current, reasonable, and complete.  However, a variety of
factors could cause actual results to differ materially from the projections,
anticipated results or other expectations expressed in this release,
including, without limitation, the uncertainties associated with potential
legal and other action the Navajo Nation may take in the future; the
uncertainties associated with the U.S. Department of Interior's actions with
respect to our renewal request; the uncertainties associated with governmental
regulation, including our ability to recover the costs associated with any
payments for rights of way on the Navajo Nation; and other factors described
in the company's (and its affiliates') Securities and Exchange Commission
filings.  While the company makes these statements and projections in good
faith, neither the company nor its management can guarantee that anticipated
future results will be achieved.  Reference must be made to those filings for
additional important factors that may affect actual results.  The company
assumes no obligation to publicly update or revise any forward-looking
statements made herein or any other forward-looking statements made by the
company, whether as a result of new information, future events, or otherwise.